Which of the following is an example of loss prevention measure?

Study for the RIBO Level 2 Test. Practice with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The choice regarding installing security systems in the property exemplifies a loss prevention measure because it directly aims to reduce the likelihood of a loss occurring. Loss prevention encompasses actions taken to mitigate risks and minimize the chances of loss before it happens. By enhancing the security of a property through systems such as alarms, cameras, and access controls, the probability of theft, vandalism, or other risks that could lead to financial loss is significantly decreased.

Increasing the deductible amount, selecting a high coverage limit, and seeking additional endorsements are all strategies related to managing the financial implications of a potential loss rather than preventing the loss itself. These options focus on how to handle losses if they occur, rather than on minimizing or preventing them from happening in the first place.

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