Lawsuits can and will cause problems for any business, big or small. It should be a priority as a local business owner to prepare early on for the possibility of harm caused to your customers or employees. Unfair litigation that tries to take advantage of a loophole is unfortunately also something quite common. But don’t worry—prevention is the best cure!
Identify Possible Risks
Take careful stock of how your business interfaces with customers and employees. What are the most common and most harmful risks? Does that interface take place on commercial property, or is it a service that happens in a customer home, like installation? Does it use tools or materials that are potentially dangerous? There are many factors that could affect the overall safety of your business, so be sure to carefully examine the possibilities from every angle, especially if your company seems mundane and safe at first glance.
Put Up Warning Signs and Labels
Caution signs in a risky environment are critical for keeping customers and employees safe. They are also a basic expectation for any business, so a lack thereof would be immediately obvious and exploitable. You will need some permanent warnings on machinery that should not be touched by untrained individuals. You will also need signs that can be constructed temporarily for certain situations—like after mopping and creating a hazardous, slippery floor. Labels are also great for employees, to make sure they understand exactly what it is they are handling.
Proper Employee Training
Make sure that new hires are trained thoroughly and competently on every subset and aspect of the job. Cutting corners may be a tempting time-saving option, but it can result in an inexperienced mistake that causes damage with far-reaching consequences. Another aspect that often gets overlooked is that of maintaining the standard set by your veteran employees—unfortunately, it’s all too easy for them to fall into neglectful habits. Talk to employees you trust, openly and honestly, about the standard of care and attention given to safety protocols when you aren’t present. Be open to retraining employees if necessary.
While it is true that you have insurance for a reason, the agencies will treat you far better if you have a clean history of business work that’s free of litigation. You’ll likely get better rates too! But at the end of the day, the safety of your employees and customers should be your priority simply for their and your sake. So do not hesitate to start preparing for your business now!
Read this next: Employers Professional Liability Insurance
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
