General Liability Risk and Loss Control Management

General Liability Risk and Loss Control Management for your small business are essential. The general characteristics of how general liability losses can be controlled or reduced are basically through loss control and loss financing. Loss control or risk control focuses in on the reduction of claims and losses with regards to the frequencies and the severities of the types of losses.

Some of the basic control mechanisms start with a companywide employee education with regards to risk control and lost control situations. The education is usually more effective if both internal and external educational opportunities are used in training your employees. Simply having an in-house loss control educational tailgate meetings usually become drab and ineffective over long periods of time. Having some external mechanisms to address the general liability risk of claims and losses tends to be more effective over the long haul. Focusing in on engineering designs and operations and the overall processes of the company is also an important characteristic of general liability loss control. Identifying the potential hazards or risk that a company has and then analyzing those hazards and risk are the first two steps in sound risk control management. From top to bottom all employees need to be involved in identifying the potential hazards that a small business might face. The CFO in the accounting office or the HR person in the administration office might not be aware of machinery or electrical issues that could be creating risk hazards out in the work area. Educating employees both internally and externally with the appropriate educational venues that are available is just part of the puzzle.

Motivating managers and employees to implement the findings from the risk hazards and training education is probably the lion share of the struggle. Having just knowledge of potential hazards is not going to produce the positive results that management is seeking without a proper motivation of all employees to implement meaningful changes. When focusing on general liability insurance risk management techniques there are both physical and psychological concerns that also need to be addressed. If the physical premises and local work environment is not conducive to reducing the risk of loss then the psychological consequences are going to be looming large amongst the employees throughout the organization. The application of all of this loss control management can be described by starting with identifying the situations for all potentials for loss, and then communicating all these hazards and risk situations with all managers and employees.

Finally the analyzing of the hazards that up and identified along with your past claims and losses for your company as well as your competitors will allow you to make effective and significant loss control changes. As we have discussed previously the implementation of these risk controls should be a combination of educating management and employees. Lastly is the issue of motivating both management and employees with a sense of urgency and commitment to fully implement everything that has been developed in this process. Liability loss control is an ongoing continuous process and not an event.

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