Business Insurance Risk Management Tips
Creating a safe workplace for employees and third-parties alike is an ideal way to save money on costly claims, which ultimately may help with lowering your insurance premiums.
In fact, a majority of businesses do not realize that their insurance company typically offers risk management resources they can take advantage of. Some of the common safety and risk management areas of discussion are:
- Risk transfer techniques with sub-contractors or tenants via hold harmless/indemnity and additional insured agreements
- Driver safety, accident/violation requirements, and personal auto insurance requirement programs
- Ergonomics best practices
- Machine safeguarding info
- Training for accident investigation preparation
- Employee safety training like heavy lifting techniques
- Workplace safety evaluations
If you're interested in implementing proper risk management practices, we're here to help by doing an analysis of what practices you can implement while at the same time working with your insurance carrier to bring their expertise and resources to the table.
Commonly used risk management & risk transfer techniques
One common risk transfer technique is the use of hold harmless/indemnity and additional insured agreements.
These contracts should be used with your tenants occupying a building you own, and also sub-contractors that you hire to perform work for your business.
The agreements not only require that the other party has their own insurance, but further, they require that the other party's insurance carrier adds you as an "Additional Insured" on their policy. You can also have the other party's insurance carrier "waive their right to subrogation". Finally, the agreements are structured so that the other party indemnifies you and holds you harmless for injuries and losses that are their responsibility.
The nuances of these agreements, and insurance requirements mentioned above, involve a lot of legalese, and it's important to consult with an attorney before entering into one of these agreements with another party.
We can help get you started with a sample form of one of these agreements which you can customize to fit your needs, and which you should reviewed by an attorney. By implementing the practice of having all tenants/sub-contractors sign these agreements, you'll be greatly reducing your risk which can lower your insurance premiums.
Some carriers will actually give you additional discounts on your insurance policy if you implement certain safety and risk management policies and practices.
Another common risk management practice for businesses that have employees driving for the business is developing a Driver safety, accident/violation requirements, and personal auto insurance requirement program.
We can help you implement a driver safety program with sample materials that you can make your own, and immediately implement into your business practices.
Contact us today for a free risk assessment of your business, and for suggestions on implementing a risk management program.
