Loss control is a crucial measure for any business. Whether it’s keeping your employees safe from accidents or protecting your property from theft and damage, loss control is critical to keep costs low and productivity high. It’s not just about being on the lookout for what can go wrong- it’s also about being proactive in preventing losses. Here are four reasons why companies need to care about loss control.
1. Improve Worker Productivity and Their Wellbeing
Without loss control, there will be lots of unnecessary accidents and material losses in the workplace. For companies that rely on workers for their business, losing any employee is a big blow. Fortunately, companies today are well aware that the majority of injuries can be significantly prevented by investing in safety and workplace health programs.
To help bolster workers’ collective health, employers should be proactive in providing a safe working environment and ensuring that their employees get proper work-related health care. By promoting wellness, employers can prevent workers from developing and exacerbating the types of injuries that reduce productivity.
2. Lower Insurance Costs
Insurance is one of the most significant line items on the business side of most budgets. As claims start to rise, insurance costs can often get out of control, costing companies more than they initially expected. Companies with loss control procedures achieved average savings of up to two percent on their insurance expenditures.
Regardless of the industry or size of the business, there are often cases where companies lose more money than needed due to injuries and lost time from injuries that happen on the job. This reduces the overall efficiency of their workforce and requires them to incur costs on their end.
To keep from losing more money than necessary on the business side, employers need to put in place loss control procedures that will help them avoid these types of problems. While it may seem standard, injury and property loss control is not a given but a necessity for any business.
3. Protect the Company’s Intellectual Property
The rise of the Internet and technology gives businesses opportunities that are hard to come by. It also puts them at risk. Almost everything you do or create as a business is some form of IP. This can be your business logo, your website, the software code you’ve developed, or your employee’s intellectual property (IP), among other things. Additionally, data collected by the company, like customer records and other sensitive information, should be protected from exposure. Depending on what industry you’re in and what kind of information you collect, breaches can vary from inconsequential to disastrous. Therefore any Business must ensure that their data and property are safe.
4. Keep the Company From Being Sued
In the event of a loss, the company is often held liable for damages of lost property or injured employees. For large companies whose net worth can be easily determined, this may not be too big a deal- but for a small business with huge liabilities, it could mean bankruptcy. Companies can be sued for several reasons, including poor work practices, such as a lack of safety equipment or safety training, failure to protect the property of employees, and failure to protect information from the Internet. The decision on when to settle or fight the claim is always complicated, but the financial burden of litigation can be devastating for a small company.
In today’s competitive workplace, companies must stay ahead of the curve to attract and retain top talent. Having a good loss control program gives small business owners a leg up against larger competitors who aren’t as diligent about managing their risks. As a result, companies can be more competitive and competitively priced, which will mean greater market share and better chances for success.