10 Ways to Manage Your Liability Risk
Any business owner can tell you they are constantly looking to cut costs, especially in today’s economy. That said, we want to let you know right from the start one corner you should absolutely not be cutting is your liability insurance. Instead, implement a loss control plan to help your business reduce costs and prevent the number of insurance claims you have to file. In the long run, this means lower premiums and safer patrons.
What Makes a Successful Loss Control Plan?
Regardless of the size of your family fun center, having an effective Loss Control Plan in place will provide you, the owner, a safer place for your visitors to have fun and a safer place for your employees to work.
Owners insurance is a must in running any successful business (and can’t for any reason be substituted), follow these tips when implementing your loss prevention plan:
1. Management Support: All management, including the owners and upper management executives, must show an interest in safety (click here to find out how important training is for this phase), and proper planning. Management should also be held accountable for enforcing safety rules and for any incidents that result from these rules being broken.
2. Create a written safety policy: A written safety policy is crucial in keeping your family fun center organized and safe. This document indicates the company’s safety goals, and includes objectives that should be developed and shared with all of your employees.
3. Employee input: All of your employees should be able to give input to management regarding safety suggestions. In most cases, employees are aware of existing problems regarding safety but, more importantly, these problems need to be communicated to management. With team work, solutions are easily created.
4. Training: Here at Sterling & Sterling Family Entertainment Insurance, we’re big believers in making sure our clients include a training program into their business model. You should always provide ongoing training programs to all employees and make sure that when new employees are oriented, they are also introduced to the safety policy we talked about in step two. Also, employees should be instructed to report any hazardous conditions to their supervisor immediately, regardless of how small it might seem.
5. Accident Investigation: Accidents happen. No matter how much you plan and how hard you work to prevent them, accidents are a risk of the business. When one does occur, you should have a plan in place to properly investigate what happened. Investigation should be conducted to obtain all the facts and, most importantly, to prevent it from happening again. Make sure you contact your insurance professional immediately to report any claims.
6. Self-Inspection: While accidents are a part of the business, it certainly doesn’t mean you shouldn’t do everything in your power to prevent them! Conduct self-inspections on a regular basis and identify any hazards found so you can correct them. In addition, inspections from your insurance carrier will be helpful in identifying hazards. Sterling & Sterling, Inc. Family Entertainment Center Insurance provides an on-site inspection to all FEC’s insured through our liability insurance program.
7. Keep Detailed Records: Keep accurate accident reports and logs. These will help you to watch for trends, repetitive injuries, etc., and help identify problem areas. These items, combined with a proper safety and Loss Control Program, will help you reduce the amount of claims at your FEC.
8. Safety Meetings: Regularly-held safety meetings should be coordinated with employees (at the very least, safety should be a topic at general meetings). Various issues can be addressed, ideas can be exchanged and problems can be solved. We recommend all FECs hold a monthly safety meeting to discuss any concerns and allow the staff to provide input.
9. Facility Protection: All facility safety equipment procedures should be reviewed and followed. This might include fire sprinkler systems, burglar alarms, fire extinguishers, access to emergency exits, etc. Owners should also be familiar with their city and state codes.
10. Knowledge of Equipment: Getting a new piece of equipment for your center can be an exciting event. Take the time to check all new equipment to make sure it is in compliance with federal, state and local regulations. In addition, make sure you read and understand the supplier operating instructions that come with the equipment, and implement a regular maintenance program.
With these 10 tips, you’ll be well on your way to having a complete Loss Control Plan for your family fun center. Want more help or have general questions? Head over to “Ask Matt” and get the answers you’re looking for.
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Sterling & Sterling, Inc. is ranked as one of the top 50 Privately Held Insurance Brokerages in the United States. We help our clients reduce risk and spend less with our unique Risk Profile System®. By using these tools, on average, we have saved our clients 25% on their overall insurance costs. To see how we can help you create a safer, more successful family entertainment center, reach out to one of our insurance professionals today by contacting us here or calling toll free at (800) 767-7837.
