Insurance Insight: Loss control measures vital to small businesses

Published 12:00 am Thursday, March 14, 2002


Businesses face financial pressures from many areas – competition, labor and inventory costs, overhead, profit margins, various regulations, and so on.

Therefore, it is important that additional unexpected, but preventable losses be minimized or eliminated.

Nearly all large corporations or businesses have formal “loss control” programs. These programs often include safety-accident prevention measures, and employee fitness programs.

Preventing losses has a direct impact on profitability.

Individual proprietors and small businesses should be alert to this fact as well.

The more common unexpected business losses are from fires, storms, thefts, injuries, and lawsuits.

Some may think, “That’s why I have insurance, isn’t it?”

It is true that a properly designed insurance program can provide an avenue for economic recovery. But it is always preferable to prevent the claim if possible, since, recurring or multiple claims, may eventually impact insurance premiums.

Additionally, time for recovery, downtime, loss of business or production, or damage to a business reputation can have lingering negative economic impacts that may be difficult, or even too much to overcome.

Whatever your size of business – look at your operations, identify safety exposures or hazards, review employee training and practices, establish a periodic self-inspection program, and do not overlook stress relief and health issues.

Sooner or later, a safe working environment, and healthy workforce, directly impacts the bottom line.

It is still true – an ounce of prevention is worth a pound of cure – whether you are in a large corporation, or have your own small business.

JAMES WAGNER JR. is a State Farm insurance agent with an office in LaPlace.