Minimize Your Business Risk
The best way to avoid business liability is through prevention – Clean up the workplace. There is a primary mantra in the military: "A place for everything and everything in its place." You may still be in danger on the battlefield but you're unlikely to be injured by tripping over something that was left in the wrong place around the barracks.
While you can't make risk go away, there are smart things that you can do to minimize the impact on your business. Buying insurance is only one of them. For a more comprehensive risk management strategy, we recommend four things:
Safety consciousness is the place to start:
The most important advice here is to simply use some common sense. Have a safety plan, and make sure that everyone is engaged in its maintenance.
Educate your employees
Build a safety conscious business attitude. Attitude is a top-down phenomenon. You can preach all you want about the way things ought to be, but unless your employees can see that you not only believe and also practice what you preach, they won't really respect what you are saying.
Workplace rules are a good thing. They make it perfectly clear to everyone how things should be done and what the consequences would be if the rules are followed. Safety rules top the list. Make sure that they are clear, understandable, rational, and practical.
In a paint spraying operation, the rule was that employees engaged in the work MUST wear breathing protection. This was such a primary health hazard, and one where the employer could be subject to serious workers comp and other health and even negligence claims, that employees would be fired if they didn't utilize the safety equipment.
Institute a climate of safety awareness. Have regular safety meetings. In hazardous areas make sure that employees receive appropriate training in the use of and care for their safety and protective equipment, and that they understand the consequences of not properly utilizing the equipment and safety procedures.
Set a safety example. Let the employees know that you respect and care about the rules at least as much as you expect them to.
Buy Insurance
There is insurance coverage available for just about any business risk imaginable. You may be in an exotic business and so require some form of exotic insurance, but for most businesses coverage is very straightforward and very affordable.
Areas that you would normally seek coverage include:
Many of the more common areas are covered through a Business Owners Policy (BOP). Explore this and other coverages by reviewing the Business Insurance Checklist or visit Insureon.com for more detailed information.
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