Prevent Business Insurance Claims

Commercial insurance, such as business insurance, is an entirely different ball game than your auto or home insurance. If you’re a business owner, you get it. Businesses run on a much larger scale than your home–with employees, heavy equipment, more liability responsibility. Most business insurance is a much pricier policy than your average personal insurance policy. If a business must file a claim, this could increase the cost of the policy, as well. Businesses want to avoid having to file a claim no matter what.

What are some of the most common business insurance claims, and how can they be prevented?

1. Fire. The cause of the fire can range anywhere from a mistake in the wiring, to a grease fire on the grill, to lightning.
Fire Prevention:
● Proper maintenance of machinery is essential to prevent system failure causing a fire.
● Reduce all forms of clutter, as clutter can be fuel for a fire.
● Have a designated smoking area with proper disposal for cigarette butts.
● In case of a fire, make sure there are multiple fire extinguishers, and that all employees know where the extinguishers are located.

2. Product liability. The responsibility of a defective product falls on either the manufacturer or the seller.
Claim Prevention:
● If a product could in any way cause harm, include a warning label. The label should be large and catch the eye right away. Make sure the warning is easy to read and understandable.

3. Slip and fall incident. The business may be held liable for any injuries sustained due to a slip and fall.
Slip and Fall Prevention:
● The business must use signs to indicate a hazardous area in the workplace.
● Clutter can ignite a fire, but can also cause a customer or employee to slip. Make sure all walkways are clear, with no obstacles.
● Install a camera system to have a record of the incident. Having a camera can also show you the cause of the slip and fall, and allow you to make necessary changes to prevent any more incidents.

If you own a business, there are numerous precautions you can take to avoid an incident in the workplace.

By: KayLynn P.