How To Avoid Costly Business Insurance Claims

Last week we posted about costly business insurance claims – and the risk your business is taking if you don’t have the right business insurance. Now let’s take a look at some things you can do to help minimize the risk of loss from those most common and most costly small business insurance claims:

BURGLARY AND THEFT

  • Invest in recruiting and hiring quality people, and follow-up with quality training
  • Invest in background checks for all people that you hire
  • Install security cameras both inside and outside of your company’s business
  • Invest in cyber security programs to protect customer personal data and proprietary information
  • Install fencing and gates around your parking lot and building
  • Install controlled access devices such as badge locks for access into your building

REPUTATIONAL HARM

  • Avoid copyright violations
  • Implement a solid internet and social media usage policy for all of your employees and enforce it strictly
  • Monitor and respond to online threats and complaints
  • Avoid making criticisms of your competitors
  • Thoroughly train all employees on how to handle suspicious situations, escalated interactions, and how to treat customers

WATER AND FREEZING DAMAGE

  • Perform routine maintenance of your company’s building
  • Store valuables including documents and photos in a safe place
  • Have an evacuation plan in place
  • Keep the heat on during extremely cold weather, even at night and when away
  • Clear roofs of excessive snow and ice
  • Have employees who know how to shut off the water valves in case of an emergency

WIND AND HAIL DAMAGE

  • Keep trees well landscaped and clear broken limbs
  • Conduct a regular inspection of your company’s building and grounds and move any items indoors that could become projectiles in high winds
  • Anchor outdoor equipment that cannot be moved inside but could still be moved by high winds
  • Upgrade your building with repairs to the roof, windows, and doors

FIRE

  • Install a quality fire detector and code compliant sprinkler system throughout your property and building
  • Conduct fire safety classes for all of your employees and have an emergency evacuation plan that is understood and practiced
  • Have the fire evacuation routes clearly marked throughout your building
  • Test and maintain all fire safety equipment
  • Clear your building and property of any fire hazards that are unnecessary to business

CUSTOMER SLIP AND FALL

  • Consider using a professional janitorial or commercial cleaning business
  • Install bright lighting throughout your company’s building
  • Have a maintenance request program in place
  • Consider any potential hazards for your flooring – for carpet check for and tears or bumps in the carpet and for tile or hardwood check regularly for spills and drips
  • Establish a plan for severe weather hazards

OTHER TYPES OF CUSTOMER INJURY AND DAMAGE

  • Regularly check your building for hazardous conditions
  • Thoroughly train employees on how to handle a customer accident
  • Carry a fully comprehensive general liability insurance coverage policy

PRODUCT LIABILITY

  • Have a product inspection policy in place to thoroughly inspect products before they become available for sale
  • Test products for customer safety
  • Frequently review products for hazardous concerns
  • Carefully review all advertising to ensure there are no misleading claims about a product

STRUCK BY OBJECT

  • Make safety the main priority in your workplace – make sure all employees have comprehensive safety training
  • Supply all of your employees with necessary safety equipment and make sure it is being used appropriately
  • Make sure you are compliant with OSHA standards

VEHICLE ACCIDENT

  • Screen driving history reports of all employees who will be driving for business purposes
  • Provide training to all employees who will be driving for business purposes for safe driving and require those employees to abide by certain safety rules
  • Never offer driver incentives for fast deliveries
  • Consider installing a tracking device that can record driver distances and speeds or posting a phone number on the company vehicle that other motorists can use to call and report concerning driving trends

Truth is nobody can avoid any accident for their entire lives but best we can do is limit the numbers the best ewe can by taking incorporating the previous steps into our everyday lives. For all other accidents we have insurance, so contact your trusted insurance agents at Fearnow Insurance.