No business is without risks. As a responsible business owner, however, it is your duty to create a safe environment for your business to operate in and manage your finances appropriately. Whenever unexpected events occur without you having an appropriate strategic plan, the results can be catastrophic. By mitigating such risks, you can reduce the chances of suffering financial loss from a liability claim.
Liability insurance protects your business, employees, and third parties within the premises from unforeseen circumstances. However, even with insurance coverage, it is your role to secure the enterprise from liability risks through in the following ways.
Identify Hazards in the Business
Many firms get sued every year for accidents and injuries that occur in the workplace due to negligence. Falls are some of the common types of liability risks that can cost businesses thousands of dollars. You can mitigate these risks by identifying areas in your business premises that pose potential hazards. These include slippery floors, steps, staircases, misplaces furnishings, and uneven walkways. Take actionable steps to create a safe environment for employees, clients, and visitors.
For instance, you can provide a “slippery floor” warning so that individuals can observe care when walking on the premises. Repair uneven walkways to prevent trip and fall accidents, and install balustrades and handrails on stairways. These measures can go a long way in protecting your firm from financial losses through claims.
Inspect Company Machinery
Company machinery includes everything from manufacturing equipment to business computers. Employees usually handle this equipment, and it is your duty to make sure that they are safe for use. Set up machinery inspections and tune-ups with qualified professionals so that any faulty equipment can be repaired or replaced. If you notice any signs of malfunction, shut down the equipment until it can be inspected and repaired.
Injuries and accidents that occur to employees at the workplace can cause financial losses. Provide employees with protective gear if work with high-risk machinery. Fire resistant clothing is a requirement for workers handling electrical systems or working around flammable substances. Investing in the gear can save your company a lot of money in the event of an accident.
Secure Data Networks
Most businesses today rely on computers and data networks for operations such as storage of information and data, communication, internet marketing, and money transfer. These data networks face the risk of cyber crime from organized criminals who are usually after valuable social security numbers, account information, email addresses, and customer data. Cyber crime not only causes business financial loss, but it can also lead to loss of clients. Even with cyber crime liability insurance, it is essential to implement security measures against these criminals.
Make sure to install and update security software on your business computers. The software should come with anti-virus, anti-spyware, anti-phishing, and intrusion prevention features to block malicious programs. It should also come with backup and restore features in case the business loses valuable information. Additionally, set up regular training sessions for employees so that they can become familiar with security measures they should take to protect the firm’s data networks.
The responsibility of safeguarding your business, employees, and clients doesn’t go away after obtaining liability insurance. Take these steps to reduce insurance risks and protect your business from liability claims and lawsuits which may damage its reputation.
