Every so often, something happens to a small business you know, such as theft or vandalism. If you’re a small business owner, you may find yourself thinking about costly events that could damage your business. No business owner wants to think about worst-case scenarios, which is probably why many view loss control as a necessary evil. No matter how you look at it, building out a loss control program is an important investment for your business.
A great way to assess your loss control needs is to think of your business like a hockey team. Let’s go through the different aspects of loss control, and see how Canada’s favourite pastime can help you create an all-star loss control program.
Types of losses: Insured and uninsured losses
Insured losses are covered by your insurance policy. Think of insurance as the hockey pads for your business: hockey players wear padding to protect themselves, and they can quickly pick themselves up after a rough check into the boards. Similarly, a store 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 store is closed for repairs.
Uninsured losses are not covered by your policy. These costs can include replacing equipment that’s been mishandled, or replacing injured employees with new hires. For hockey players, certain injuries can’t be avoided with padding. For instance, no amount of padding can fully prevent knee injuries from occurring. However, with proper training and skating best practices, these types of injuries can be minimized.
The same can be said about your business. With proper employee training and best practices, you can minimize the downtime of your machinery and keep your business operating smoothly. Building out a proper loss control plan can help you profit in the long-run.
Claims that involve libel, slander and violation of right of privacy are known as reputational harm, and are the most expensive claims that small businesses could experience. As a small business owner, you can take steps to avoid these claims, including requesting background checks, having someone look over your advertising copy, and having an emergency preparedness plan ready.
Why your business needs a loss control program
Much like how a hockey coach uses a playbook to differentiate from other teams and score more goals, you can use a proper loss control program to stand out from the crowd by ensuring the safety of your customers and employees. Here are some key reasons why loss control programs are effective:
- They provide 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.
- They provide opportunities to identify hazards through regular inspections, quality control programs, and procedures to correct deficiencies, which can help to avoid and reduce losses.
- They provide 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.
How to build a loss control program for your business
Successful hockey teams know the importance of training. Most professional teams have mandatory training sessions and practices to ensure their players are performing at the top of their game. An effective coach develops drills, plays, and best practices to help take their team to the Cup. An effective business owner can do the same for their employees.
Here are just some of the ways you can build out an effective loss control program for your business:
- Teach staff how to use new equipment to improve efficiency and safety
- Install monitored burglar alarms and sprinkler systems to protect your assets
- Develop employee safety manuals, policies and guidelines to build a culture of safety.
- Make safety training mandatory to actively promote this culture of safety
Ways employees can assist in loss control
Hockey is a team sport; you should view loss control in the same way. If you really want your loss control program to be a success, your employees need to play an active role.
Employees should actively assist in reducing, controlling, or eliminating workplace hazards, accidents, and injuries. In fact, your employees should strive to be like Wayne Gretzky – he is the NHL’s all-time leader in assists! Here are ways in which your employees can actively assist in loss control:
- Think “safety” before starting any work.
- Follow all loss control procedures, regulations, and rules.
- 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 control training.
- Suggest methods to control workplace hazards.
Improve the overall success of your business with a loss control program
Involving all of your employees in the creation, maintenance, and enforcement of a loss control program will go a long way toward enhancing your profits and the overall success of your business. Having an effective loss control program in place can turn a good business into a great one.
Ready to protect your business beyond a loss control program? If you’re looking for comprehensive insurance coverage for your small business, check out TruShield. Our policies are designed to meet the needs of Canadian startups, entrepreneurs and small businesses. Get started by answering a few online questions to get a free quote, or give us a call at 1.844.285.6910 to talk to one of our representatives today.
This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information. Terms, conditions and exclusions apply to coverage. See policy for details.