How to Limit Risk for Your Business? Practice Loss Prevention
What is the best way to save your business in a crisis? Consider your worst-case scenarios – implement an effective loss prevention plan before it happens!
It’s hard to think about the things that could harm or damage your business. But, with so much on the line – your investment of significant time and money – creating a loss prevention program becomes a vital part of your greater investment in the business.
Understanding how to prevent loss before a tragedy or crisis is essential. It means understanding the types of losses your business may incur: insured and uninsured.
Insured losses are covered by your insurance policy. A business that has property insurance will be covered from an unexpected fire, and with business interruption coverage, the store will even be compensated for the income lost while the business is closed for repairs.
Uninsured losses are not covered by your policy. These costs can include replacing equipment that’s been used improperly or replacing sick or injured employees with new hires.
Develop an effective loss prevention plan and your business profits in the long run.
When it comes to implementing an effective loss control strategy, you can get out ahead of any expensive uninsured losses through proper and thorough employee training and best practices, minimizing any potential downtime of your machinery to keep your business operating smoothly.
Claims that involve libel, slander, and violation of the right of privacy are known as reputational harm and are the most expensive claims that small businesses can incur. As a small business owner, you can take steps to avoid these claims, including requesting background checks, having someone review your advertising copy, and having an emergency preparedness plan ready.
There are several reasons why you should incorporate a solid loss prevention program for your business:
- It provides guidance for employees. Employees who are aware of hazards and are properly trained on how to deal with them tend to be more efficient workers.
- It provides opportunities to identify hazards through regular inspections, quality control programs, and procedures to correct deficiencies, which can help to avoid and reduce losses.
- It provides direction for emergency procedures. Employees who are properly trained on emergency response are prepared to act quickly and correctly during an emergency. This can help mitigate losses and increase profits.
A culture of safety – regular practice helps prepare your business not just in the case of an emergency, but every day.
An effective business owner should conduct mandatory training sessions and practices. Develop drills, performance reviews, and best practices to help ensure your workforce is less vulnerable to expensive and possibly dangerous mishaps.
Here are some of the ways you can develop an effective loss prevention program for your business:
- Develop employee safety manuals, policies and guidelines to build a culture of safety
- Teach staff how to use new equipment to improve efficiency and safety
- Install monitored burglar alarms and sprinkler systems to protect your assets
- Make safety training mandatory to actively promote this culture of safety
Empower your employees
If you really want your loss prevention practices to be successful and effective, your employees need to play an active role.
The people who work for you should be required to participate in reducing, controlling, or eliminating workplace hazards, accidents, and injuries. There are a number of ways in which your employees can actively assist in loss prevention:
- Think “safety” before initiating any work.
- Follow all loss prevention procedures, regulations, and rules you’ve outlined.
- Follow inspection guidelines for all equipment, machines, and tools.
- Utilize proper personal protective equipment where required.
- Operate all equipment with safety guards in place.
- Operate only the equipment and machines you’re trained and authorized to operate.
- Immediately report all unsafe acts, conditions, and accidents to management.
- Participate actively in loss prevention training.
- Recommend a specific methodology to control workplace hazards.
An effective loss prevention policy is simply good for business.
Encouraging all employees to participate in the development, maintenance, and enforcement of a loss prevention program will be invaluable in enhancing the safety and efficiency of your business while helping to increase your profits and the overall success of your business.
Do you want to protect your business through a loss prevention program? If you’re looking for comprehensive insurance coverage for your small business, contact us!
