A Guide to Loss Control: What Every Business Owner Needs to Know

From employee injuries to damage from fire to theft, every business faces risks. With loss control, you can identify and evaluate the risks to your business and take steps to lower them or protect against them. By managing your risks, you can improve safety and save money. Learn more with this guide. 

What Is Loss Control? 

Loss control is a system of figuring out what risks your business faces and addressing them. Those risks could be risks to your employees, like accidents, or risks to your company, like issues that could cause financial losses.   

• With good loss control, you can meet OSHA regulations, keep your workers safer, reduce insurance claims, keep your business running on schedule and save money.
• According to Safety Reports, as part of business risk management, it’s a good idea to: 
• Look for places where your business could be facing risks. 
• Figure out how likely these risks are. 
• Define your goals. For example, do you want to lower injury rates? Reduce your insurance expenses? 
• Take steps to reduce your risks. That could include maintaining your equipment regularly, training your employees or inspecting areas where risks are likely. 
• Decide who is in charge and make their responsibilities clear. 
• Document your plan so everyone involved knows what should be done. 
• Evaluate how well your loss control services and strategies are working and whether you need to take any additional steps.

The Benefits of Good Loss Control 

When you’re minimizing risk in your business, you may notice:  

• Employees are more productive and have better morale. They may feel more secure knowing that you take their safety seriously. You have a trusting, positive company culture. 
• You save money. You don’t pay as much in deductibles for insurance, and you’re less likely to see your premiums go up or your coverage limited when you renew your policies. You’re not facing fines or penalties. 
• Your business has a better reputation. Clients and suppliers know that you make safety a priority.

What Is Loss Control in Insurance? 

Insurance companies know the value of loss control. So, depending on your business, they may recommend or require that you take steps to lower your risk. That way, you’re not as likely to file an insurance claim.   

According to Investopedia, some examples of loss control practices for businesses could include installing a sprinkler system so you don’t have as much damage if a fire breaks out or putting in a security system to lower the risk of theft.   

By working with your insurance company on loss control strategies, you may see discounts on your insurance, including your business property and business liability protection coverage.   

Learn More About Loss Control and Business Insurance

When you’re running a business, you have a lot you need to manage. It can be challenging to identify all the risks your business could face, put strategies in place to lower them and evaluate those methods to make sure they’re effective.   

At Farm Bureau, we’re experienced in reviewing businesses and helping owners like you build loss control plans that work. Reach out today to learn more about how we can help.