Challenges and Solutions

When quoting a commercial property, there are many important factors to consider. Our experience tells us you face many challenges and Verisk’s solutions can help you mitigate hazards, reduce deficiencies, and improve your bottom line.

Loss Cost

A filed loss cost is a powerful driver of underwriting and pricing, helping you determine adequate premium. Using our Specific Commercial Property Evaluation Schedule (SCOPES), we’ll show you where deficiency points apply and how you can encourage the property or business owner to reduce the hazards. Improve your profitability by explaining pricing incentives offered by insurers for protection features, such as automatic fire detection and fire suppression systems, portable fire extinguishers, standpipe systems, and watchman services. You get the RCP code (rating, construction, and protection) too.


One of the primary goals of successfully quoting a commercial property insurance policy is determining the risk of fire, and one of the main considerations in making that determination is assigning the proper construction class. What are the materials? What percentage of the structure consists of each kind of material? How much damage can the building withstand when exposed to fire? Properly identifying the construction class can help the underwriter rate the risk more accurately. Verisk defines six construction classes for commercial buildings. You can find detailed information on the types of materials used and their susceptibility to damage at Construction Briefs.

For specific information on each class, see the links below.

Type I and Type II Fire Losses

There’s great value in knowing the two types of maximum loss (Type I and Type II) that a building can experience in a fire. The type of fire loss depends on the action of the sprinkler system. Type I is an estimate of the maximum expected loss in a single fire, expressed as a percentage of the building's value, when critical protection systems are functioning as expected. Type II is an estimate of the largest fire loss likely to occur if a key loss-reduction system fails. Those two measures can help you understand the extent of risk involved and manage it better through appropriate mitigation strategies, as well as hazard and loss analyses. You can also assess economic loss to the property. Both measures are available in our Loss Cost and Estimated Loss Cost Reports.

Replacement Cost

According to industry studies, 75 percent of commercial buildings are underinsured. Verisk’s estimated replacement cost represents the average estimated cost to rebuild the building after a total loss. That estimate will improve your ability to evaluate the risk and protect your customers with more appropriate policy limits.

Verisk offers agents a wide variety of solutions through our ProMetrix® for Agents platform.

For more information about ProMetrix for Agents

  • Call Verisk Customer Support at 1-800-444-4554, option 3.