Words: Federated Insurance
Establishing and promoting a culture of risk management can have a significant impact on your business. Emphasis on workplace safety and loss prevention — from senior management to front line employees — can help businesses run more efficiently and avoid errors that could dent or break your bottom line.
Every injury, lawsuit, poor hire, and missed opportunity to plan ahead can lead to losses. Insurance can help pay for some of the direct costs of a loss, such as property damage, medical bills, and legal expenses. But your business is responsible for some related expenses such as: hiring and training new employees, lost productivity, low morale, damaged reputation, and potentially higher insurance premiums. With this in mind, prioritizing safety, good judgment, and a solid risk management plan can help protect your people and your profits.
It Starts at the Top
A risk management culture is more than just documented policies on a piece of paper. Management should be committed to upholding safety and risk mitigation across the board, and that commitment should have a ripple effect on everyone — from the most senior veteran employee to the newest hire. You can lead by example, by:
- Encouraging open communication
- Introducing new employees to your risk management culture and company expectations
- Enforcing and reinforcing safety policies
- Investing in risk management resources
Take Control and Enforce Safety Policies
With the knowledge that many claims are preventable, it’s important to create and enforce policies related to safety, conduct, and hiring. Designating a risk manager to address these critical practices is one way to take the reins. Consider the risks of not enforcing a risk management plan. It may be tempting to disregard certain infractions with the hope that an incident won’t occur, but that could lead to serious repercussions down the road. A single individual failing to follow your safety practices could be costly, lead to long-lasting effects, and could lead to low morale among employees who must deal with the consequences.
Consider the Financial Impact
Hidden claims expenses can quickly add up. Additionally, losses can impact your workers compensation experience modifier rate, which may lead to higher insurance costs. Although fully committing to a risk management culture requires an investment, potentially including money, time, or additional personnel into your safety program, this is a case where you may be better off safe than sorry. Knowing that your business is well-equipped with the right risk management culture solutions can allow you to address emerging challenges and various market conditions, all while maintaining a positive, productive work environment.
Continue fostering a risk management culture at your business — both for the safety of your employees, and the well-being of your business as a whole.
This article is for general information information and risk prevention only and should not be considered legal or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all risk of loss. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. Some of the services referenced herein may be provided by third parties wholly independent of Federated. Federated provides access to these services with the understanding that neither Federated nor its employees provide legal or other expert advice. All products and services not available in all states. Qualified counsel should be sought with questions specific to your circumstances and applicable laws.