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Using Loss Control to Your Financial Advantage

loss controlMake a Difference with Good Loss Control Management Strategies

Most business owners are aware of common forms of loss control methods such as using ergonomic safety devices to reduce employee work-related injuries that are caused by repetitive motion. Concerned employers invest in environmental controls such as improved lighting to eliminate injuries and worker fatigue due to poor visibility or line of sight issues. Also, certain manufacturing environments and corporate office buildings require efficient ventilation systems to correct unhealthy air quality conditions. Small businesses can benefit as much as large corporate businesses when industry leadership prioritizes proactive measures for loss control or risk management.

Getting Started

The development of a proactive loss reduction program that uses a three-pronged strategy starts with a comprehensive loss control survey to monitor every job, every instrument, and all equipment placement and functions. All operations and processes are reviewed for possible safety hazards and potential loss.

From this survey study of your business operations, you can outline three approaches to improve your risk management plan:

  1. Serious safety training for every employee
  2. Loss and risk reduction strategies
  3. Loss control measures that reduce the number of annual claims.

Get Your Staff Onboard

Safety Training: Concerned employers do not allow their managers and employees to dismiss safety training as needless or obvious. Safety minded businesses proactively employ effective reminder strategies such as posters, award programs for zero injuries or work absences each month.

Loss Reduction: Partnering a good insurance coverage plan with the implementation of methods that solidly reduce workers comp claims saves any size business measurable expenses each year. Loss measures like installing safety devices, controlling possible hazards in the work environment and supplying employees with effective safety and protective gear address your company brand as a good and caring employer as well as developing the loyalty of your employees in supporting your Loss Control Policies.

Loss Control: Speaking to a loss control representative provides an added advantage as they are in the field daily and see first hand what solutions work best for certain problems and have a concern with cost effectiveness in regard to your budget. Partnering a consult with a loss control representative and your insurance coverage agency will manage costs while covering risk financing that makes sense for your company.

  • Loss prevention will identify factors that can increase the risk of loss. Eliminating those factors may not be as obvious to a business owner as they are to your Loss Control Professional.
  • The behavioral approach to loss prevention is managed more easily because these types of losses happen often due to human error and lack of training. Investigating the engineering approach focuses on lowering instances of loss using improved practices and procedures to lower risk.
  • Loss Control Professionals can advise you about viable risk avoidance and prevention strategies that include separation and transfer.
    • Business owners use separation methods like segregating the risk of loss from downtime. An example is setting up manufacturing lines in two separate facilities so if one facility suffers a downtime loss, production can still continue at the second location avoiding downtime for both manufacturing lines.
    • Transfer strategy is much more than purchasing insurance coverage for your business. It also can include legal risk-reducing strategies, subcontracting, and other prevention strategies to avoid future risks.

You may find that this is a good time to begin implementing your company’s loss control strategy. To begin, give our representatives a call at Ramey & King Insurance, 940-382-9691. Send us an email if you prefer and our qualified staff will contact you today!