Why does the insurance company classify hazardous roads as physical hazards?

Classifying hazardous roads as physical hazards reflects the idea that these roads are associated with environmental conditions that can increase the likelihood of accidents or losses. Physical hazards encompass tangible, objective risks that can directly impact the safety and security of insured properties and individuals. For instance, poorly maintained roads, areas prone to flooding, or roads in regions with high accident rates create an increased risk of accidents and damage. By identifying these road conditions as physical hazards, insurance companies can better assess risk factors and subsequently determine coverage terms and premiums for those affected by, or residing near, such conditions. This classification aims to address the heightened risk landscape that these environmental factors create, ultimately fostering a more accurate approach to underwriting and claims handling.