What Is Risk Management and How Can It Help You Reduce Insurance Claims?

Employers bear many responsibilities as they pursue organizational goals while maintaining workplace safety and productivity. Accidents impacting your employees in the workplace, as well as errors that might setback operations or inconvenience clients, can invoke far-reaching consequences. While the right insurance can help offset losses in these situations, it’s generally best to avoid relying on such assistance. That’s why suitable risk management procedures should be a top priority for all companies.

Understanding Risk Management

Risk management refers to the various measures and practices your business might implement and maintain to limit the risk of workplace accidents, errors and other unexpected mishaps. Your organization’s leaders and decision-makers must take a proactive approach toward risk management, as insufficient precautions and preparations could expose your company to more significant financial losses and necessitate insurance claims that might have otherwise been unnecessary.

How Can Risk Management Limit Insurance Claims?

Instituting ideal risk management practices can help reduce your reliance on insurance policies. Although your coverage’s primary purpose is to render aid during difficult times, filing claims can lead to higher premiums or nonrenewal of coverage. Fortunately, appropriate risk management can help reduce your business’s need to do so. Consider the following examples:

• Risk management might include providing employees with the best personal protective equipment. Doing so can reduce injuries and subsequent workers’ compensation insurance claims.
• Securing your business premises with surveillance cameras and security measures may be key to preventing vandalism and burglary. Otherwise, you might need to file a claim against your commercial property insurance.
• Training employees on ideal methods and techniques can reduce errors and decrease the chance your business may one day face accusations of subpar service, potentially leading to a professional liability insurance claim.

We’re Here to Help

Contact Lyceum Insurance Services today to learn more about workplace safety and risk management.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.