Running a small business is no small feat. With limited resources and tight margins, even a minor incident can significantly impact your bottom line. According to the National Safety Council, workplace injuries alone cost U.S. businesses over $167 billion in 2022, and small businesses are often the hardest hit. For many, one costly incident could mean the difference between staying afloat and closing their doors.
These incidents are why a proactive approach to risk management is crucial. One of the most effective strategies for protecting your business is conducting a thorough hazard assessment. You can safeguard your assets, employees, and overall business health by identifying potential risks before they lead to costly claims.
But where do you start? A loss control specialist is an expert dedicated to helping small businesses like yours navigate risk mitigation and the key to a successful hazard assessment.
“At Central, our loss control specialists are trained and experienced to assess common hazards for businesses and provide suggestions to avoid or control those hazards. They will also address hazards that make a particular business unique,” describes Anne Russo, director of small business underwriting at Central Insurance.
In this article, we’ll dive deeper into the role of a loss control specialist, how they can assist in addressing potential hazards unique to your industry, and the long-term benefits of working with one. Whether you’re a new business owner or an established entrepreneur, understanding the value of loss control can make all the difference in protecting your business.
What is a Hazard Assessment?
Hazard assessments are critical processes that identify potential risks within your business environment. They evaluate a risk’s likelihood and determine its potential impact. This process is essential for small businesses because it can uncover risks that might otherwise go unnoticed until an incident occurs.
A comprehensive hazard assessment should involve these four steps:Identifying Hazards
1. Identifying Hazards
The first step is to systematically identify potential workplace hazards, including physical hazards like unsafe machinery and poorly maintained equipment, ergonomic risks, chemical exposures, and even cybersecurity threats. While some of the basic risks are universal, others can be unique to the business you operate.
“There are some hazards that are common to all businesses, whether large or small,” Russo says. “For example, a clothing boutique could experience a customer trip and fall over a rug, resulting in hundreds of thousands of dollars in medical costs just as a larger multi-location retail operation could.”
While understanding the broad risks of your field is important, unfortunately, there’s no checklist of hazards for your business to consult, as hazards are unique to every industry. For instance, a restaurant may need to consider the risk of slips and falls in the kitchen, while a construction company might focus on machinery safety and fall protection. It’s vital to understand the distinct hazards that can affect your operations.
Learn More: Loss Control for Office Spaces.
2. Evaluating Risks
Russo explains that once you identify a risk, the next step is to evaluate the likelihood of each hazard leading to an incident and the severity of the potential consequences. This evaluation helps prioritize which risks need immediate attention and which you can address over time. Small businesses with limited resources benefit from this prioritization by focusing their efforts on the most critical risks first.
3. Implementing Controls
After you evaluate risks, implement appropriate control measures to mitigate them. These controls can be engineering controls (like installing guards on machinery), administrative controls (like implementing safety training programs), or personal protective equipment (PPE). The goal is to eliminate the hazard or reduce the risk to an acceptable level.
“A small business may use profits to grow, but it’s also important to invest early on to minimize unplanned losses. This could include regular equipment cleaning and inspections, background and MVR checks on employees, or adding a security system,” Russo says. “Chances are these actions will prevent a loss from happening or reduce the cost and time to recover if one does occur.”
4. Monitoring and Reviewing
A hazard assessment is not a one-time activity; it requires ongoing monitoring and regular reviews to ensure the controls remain effective and you identify new risks as the business evolves.
By conducting regular hazard assessments, small businesses can proactively manage risks, improve workplace safety, and potentially lower their insurance premiums by demonstrating a commitment to risk management. In addition to a thorough risk assessment and implementing the appropriate changes, Workers’ Compensation insurance is crucial to keep your employees safe.
Did You Know? Central’s Nurse Hotline provides 24/7 support for employees who experience an injury at work. When an employer calls the hotline, a registered nurse will work with them to provide appropriate medical advice while assisting them with correctly reporting the injury to the insurance company.
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The Role of a Loss Control Specialist in Hazard Assessments
Russo describes a loss control specialist as an expert in risk management who can advise businesses to conduct thorough hazard assessments and provide tailored recommendations for mitigating risks. Their role is especially valuable for small businesses, which may not have the in-house expertise to identify and manage all potential hazards. They can also help your insurance carrier understand the necessary coverage your business needs.
Learn More: The Benefits of a Dedicated Loss Control Specialist.
“At Central, our loss control specialists are the underwriters’ eyes and ears to identify things about a business that enhance their understanding of risk,” Russo says. “This allows us to most accurately price and condition the policy.”
Here, Russo outlines three of the many ways a loss control specialist can support your business during a hazard assessment:
- On-Site Evaluations: Your business may qualify for a loss control specialist to visit your business premises to survey the workplace. They can identify certain risks and advise on how you can remedy them.
- Risk Analysis: With industry-specific knowledge, loss control specialists can help you identify hazards that may not be immediately obvious. These could be common risks other businesses in your industry face or unique risks to your specific operations. Loss control specialists working with retail stores might focus on customer safety and fire prevention, while those working with construction companies might prioritize fall prevention and equipment maintenance.
- Tailored Recommendations: Loss control specialists provide actionable recommendations to address identified hazards. These recommendations work towards creating a safer work environment that reduces the likelihood of accidents and their associated costs.
Construction Expertise: How Central Helps Contractors with Hazard Assessments
While Central can assist businesses with loss control resources and recommendations across many industries, insured contractors can benefit from additional support. The construction industry is inherently risky, with dangerous job sites and costly claims. Central is building expertise in the construction space to support businesses in this challenging industry.
Central’s construction underwriting specialist, Matt Sbordone, combines technical expertise with relationship building. Sbordone and Central’s Construction Underwriting team can assist policyholders in bringing expertise into insurance support and solutions. Central’s loss control construction specialist, Jim Johnson, also assists construction clients in evaluating job site exposures.
Learn More: Loss Control Tips for Construction Companies.
Supporting our policyholders in preventing losses is an essential extension of our commitment to caring for those who trust us. Central policyholders can benefit from loss control specialists who will advise your business on the best practices for loss control and are 100% dedicated to keeping your business safe.
The Central Difference
Central insures and supports a variety of commercial businesses across industries. No two businesses are exactly alike. That’s why Central offers flexible business insurance policies, programs, and resources to meet your unique coverage needs. Even if your business does not qualify for loss control specialist services, you still receive extensive support with Central.
“Policyholders still have access to several self-service resources. These include a risk management library offering things like templates, safety training videos, and links to OSHA resources for smaller employers,” Russo explains.
While any risk control program the policyholder has or develops due to the hazard assessment is theirs to manage and run, our consultants will be available to help. To get started with loss prevention assistance and safety services, contact a Central agent today.
