One of the inherent risks of owning a business in the United States is the risk of being sued. America tends to be a fairly litigious country, which can be the cause of some serious grief for business owners. For the sake of both your business and the well-being of your employees, you must be aware of situations that could increase your company’s liability and risk of being sued.
You Have a Lack of Clear Protocols
Businesses should have clear protocols in place for the vast majority of tasks, but especially those that have a higher risk of injury. Failing to do so means it can be a lot more difficult to prove that you as a business have done your duty to provide your employees with a reasonably safe work environment. Even if the problem was a result of a failure on the part of your employee to perform their job properly, you’ll be hard-pressed to make your case if you don’t have established procedures for how things should be done to reduce the risk of workplace injury. By failing to provide clear standards and guidelines, you increase your risk of being held liable for the incident, even if only in part.
Your Industry is High-Risk
Operating in a high-risk industry naturally carries with it a higher risk of being held liable for injuries that might happen at the workplace. The more that can go wrong, the more likely it will go wrong. It is especially important to take every possible precaution to protect your employees from becoming injured and your business from being held liable for it. Consider businesses that use hazardous chemicals. Highly hazardous chemicals (HHC) are usually defined by OSHA or the EPA. Such chemicals need to be properly labeled, stored, and handled. Failure at any of these parts could cause liability problems for your business.
Poorly Trained Employees
There is virtually always going to be the possibility of human error being the cause of a liability incident, but proper training can go a long way towards addressing that. Conversely, failing to provide your employees with proper training could mean your company would be held liable for injuries that result from a lack of training. Poorly trained employees pose a risk to not only themselves but their coworkers and potentially even your customers. Carefully document training completion as it happens and keep the records on hand in case you need them.
If you’re going to have a shot at reducing your business’s liability, you need to first be aware of situations that could increase it. Failing to have clear protocols in place, operating in a high-risk industry, and failing to adequately train your employees could put your business in a dangerous situation. If you notice yourself in any such situations, look for ways you can reduce your liability and protect your employees. It’s really what is best for everyone.
Help keep your business protected with our great business insurance offerings! Request a quote from one of our Florida Licensed Agents here.
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.
