What are physical hazards defined as?

Physical hazards are defined as physical conditions that increase the chance of loss. This definition encompasses any tangible factors or circumstances in the environment that can potentially lead to negative outcomes, such as injuries, property damage, or other liabilities.

In the context of insurance and risk management, identifying physical hazards is crucial because they can directly affect the likelihood of a claim being filed. For example, an unsafe workplace with unguarded machinery presents a physical hazard that heightens the risk of accidents occurring.

Understanding physical hazards allows insurers and businesses to implement measures to mitigate risks, thus promoting safety and reducing potential liability. It's essential to recognize these conditions to effectively manage risks and protect assets.