Preventative and pro-active tips for businesses to avoid costly claims

General Business Risk Management

1. Develop Written Policies and Procedures

• Create clear safety, HR, operational, and security policies.
• Review and update procedures annually.
• Train employees regularly and document training completion.
• Enforce policies consistently.

2. Maintain Good Documentation

• Keep detailed records of contracts, employee files, safety meetings, inspections, and customer communications.
• Document incidents immediately, even if no claim is filed.
• Retain records according to legal requirements.

3. Conduct Regular Risk Assessments

• Identify hazards before losses occur.
• Review operations, facilities, vehicles, cyber systems, and vendor relationships.
• Correct deficiencies quickly.

Property Insurance Claim Prevention

Building and Facility Protection

• Install monitored fire alarms and sprinkler systems.
• Maintain HVAC, electrical, and plumbing systems.
• Conduct routine roof inspections.
• Keep walkways well-lit and free from hazards.

Theft and Vandalism Prevention

• Install security cameras and monitored alarm systems.
• Use access controls and key-card systems.
• Secure valuable inventory and equipment.
• Perform background checks where appropriate.

Business Continuity Planning

• Create disaster recovery and emergency response plans.
• Back up critical records offsite or in the cloud.
• Develop contingency plans for power outages and supply chain disruptions.

Workers’ Compensation Claim Prevention

Focus on Workplace Safety

• Conduct regular safety meetings.
• Enforce PPE (Personal Protective Equipment) requirements.
• Perform job hazard analyses.
• Investigate all accidents and near misses.

Ergonomics

• Provide proper workstation setups.
• Train employees on lifting techniques.
• Use mechanical lifting equipment when possible.

Return-to-Work Programs

• Develop modified duty opportunities.
• Maintain communication with injured employees.
• Reduce claim duration through early intervention.

General Liability Claim Prevention

Customer and Visitor Safety

• Inspect premises daily.
• Address slip, trip, and fall hazards immediately.
• Clearly mark dangerous areas.
• Keep parking lots and walkways maintained.

Contract Management

• Use written contracts for vendors, customers, and subcontractors.
• Include indemnification and insurance requirements where appropriate.
• Require certificates of insurance from contractors.

Quality Control

• Implement quality assurance procedures.
• Maintain product testing and inspection records.
• Address customer complaints promptly.

Commercial Auto Claim Prevention

Driver Screening

• Check motor vehicle records before hiring.
• Establish driver qualification standards.
• Review driving records annually.

Fleet Safety

• Create a written driver safety policy.
• Prohibit distracted driving and mobile phone use.
• Use telematics or GPS monitoring when appropriate.
• Schedule preventive vehicle maintenance.

Accident Response Training

• Provide drivers with accident reporting kits.
• Train employees on reporting procedures.
• Investigate all vehicle incidents.

Cyber Liability Claim Prevention

Cybersecurity Basics

• Require multi-factor authentication (MFA).
• Use strong password policies.
• Keep software patched and updated.
• Encrypt sensitive data.

Employee Training

• Conduct phishing awareness training.
• Test employees periodically with simulated phishing exercises.
• Limit access based on job responsibilities.

Incident Response Planning

• Develop a cyber incident response plan.
• Establish backup and recovery procedures.
• Maintain relationships with IT and cybersecurity experts.

Employment Practices Liability (EPLI) Claim Prevention

HR Best Practices

• Maintain a comprehensive employee handbook.
• Use consistent hiring, discipline, and termination procedures.
• Document performance issues thoroughly.

Training

• Conduct anti-harassment and discrimination training.
• Train supervisors on proper employee management.
• Provide a clear complaint reporting process.

Risk Management Tips That Insurers Love

Businesses often receive more favorable insurance terms when they:

• Conduct annual safety training.
• Maintain low claim frequency.
• Use formal return-to-work programs.
• Implement cybersecurity controls.
• Perform documented facility inspections.
• Utilize written contracts with risk-transfer provisions.
• Maintain strong housekeeping and maintenance programs.
• Hold regular management risk reviews.

Proactive Annual Insurance Review Checklist

☐ Review property values and replacement costs
☐ Analyze prior claims and implement corrective actions
☐ Update payroll and revenue estimates
☐ Review contracts and certificates of insurance
☐ Evaluate cyber exposures
☐ Verify business interruption coverage adequacy
☐ Confirm vehicle schedules and driver lists
☐ Review employee safety training records
☐ Examine vendor and subcontractor insurance requirements
☐ Meet with your insurance broker for a comprehensive risk review

The most successful businesses treat insurance as the final layer of protection, not the first. Strong safety culture, documented processes, employee training, cybersecurity, and regular risk assessments are typically the most effective ways to reduce both claims and insurance premiums over time.