Running a business is inherently risky. Think about it. Many factors are beyond your control. Natural disasters, accidents, and employee theft are just a few factors to consider when thinking about corporate liability. These issues can lead to loss of income, lawsuits, and other legal tangles.
Tips to Minimize Business Risks and Losses
For example, workplace injuries can lead to medical treatment costs and lost productivity. Your employees suffer and so does your business. However, there are safeguards. Train your employees on workplace safety and make sure you have a safety plan, especially if your business requires the use of heavy machinery or inherently dangerous tools or chemicals.
Make sure every employee has access to safety equipment and never try to cut costs at the risk of hurting another person.
Despite all your best efforts, things happen. That’s why business insurance was created – to help keep you covered in an emergency.
Check your insurance policies
Keep in mind, as your business changes and grows, so does your risk potential. Perhaps you have gone from an online business to a physical one, or you have added several employees to your fleet to help expand your delivery service. Whatever the case, always review small business insurance policies to help ensure you have adequate coverage. You will also want your attorney to review your policy needs.
Buy business insurance
Buying business insurance is only one part of minimizing business losses. In most cases, an effective risk management and loss prevention program will lower your insurance premiums and decrease the likelihood of filing claims, replacing damaged property, and defending yourself in a lawsuit. Do the following?
- Keep your wiring, carpets, stairs, floors, elevators, and escalators in good condition.
- Have a system in place to eliminate slip hazards from floors and stairs.
- Install fire and burglar alarms.
- Insulate flammable materials and products.
- Install high-quality locks.
- Store valuables in a safe.
- Install and maintain lighting that prevents theft.
- Use a security service.
- Let only employees with good driving records work for you.
- Provide driver training.
- Provide ongoing training to minimize injuries caused by operating machinery.
- Prohibit employees from disabling safety devices on machines.
- Provide employees with protective equipment.
- Teach employees to lift properly.
- Have, and wear, a self-inspection list from OSHA to help you identify and minimize employee risk from particular hazards.
- Make sure your employees’ workstations are ergonomically suitable and that they follow guidelines to avoid injury.
- Keep minimum amounts of cash in your office and at the cash registers.
- Keep proper and up-to-date records of your inventory, accounts receivable, and equipment purchases.
Additional Resources
Hire a qualified attorney
There are many different types of small business insurance policies. If you have questions about what is right for your business, speak with a qualified business and commercial law attorney. An attorney can help you decide what your risk exposure is and how best to protect your business.