Final answer:
The philosophy of loss control involves activities to minimize property losses before, during, and after a fire incident, including installation and inspection of security and fire sprinkler systems to reduce insurance rates.
Step-by-step explanation:
The philosophy of loss control aims to perform activities that minimize property losses before, during, and after a fire incident. Insurance companies reduce the risk of moral hazard by monitoring behavior and incentivizing preventive measures.
For instance, businesses might receive lower property insurance rates if they install minimum level of security and fire sprinkler systems and ensure regular inspections of these systems. Such measures not only reduce the likelihood of fires but also limit the extent of damage should a fire occur, demonstrating a comprehensive approach to safeguarding against potential losses.