physical scrutinizing review of goods, property, or documents. Inspections of real estate may be required for the following purposes: compliance with building code; sale requirements as to property conditions, such as wood-destroying insects or structural soundness; and legal review of documents such as leases or mortgages to determine whether they are as purported. There are also customs inspections for imports and quality control inspections.
in property or liability insurance, right retained by the company to inspect the insured premises as well as its operations in order to detect inherent structural defects and other hidden hazards. Inspections also help reduce loss frequency and severity through recommended safety engineering loss prevention and reduction procedures. In workers compensation insurance, the insurance company must inspect the business's payroll record since premiums are based on the business's gross payroll. In life insurance, the company may obtain verification of statements by an applicant and other information.
a physical scrutinizing review of property or of documents.
Example: Inspections may be required for the following purposes:
- compliance with building codes
- sale requirements as to property conditions, such as wood-destroying insects or structural soundness
- legal review of documents such as leases and mortgages to determine whether they are as purported
