How to Protect Against Common Commercial Liability Risks

Learn how you can protect your company from liability threats.How to Protect Against Common Commercial Liability Risks

As a business owner, you understand that you’re subject to a certain amount of risk. Liability risks amount for the most considerable number of threats that businesses face on a regular basis. So, what can you do to reduce your risk of a major liability event? While different liability issues require different preventative strategies, here are some general steps that you can take to reduce your company’s liability risks.

1) Employee Training

One way to lower your liability risk is by requiring your employees to complete rigorous training programs. During training, you should of course teach your employees how to complete their jobs safely and with minimal errors. However, your employees should also learn everything from safe customer data handling to how to handle a customer injury to how to politely speak to a disgruntled client. By educating your employees on how to manage a variety of situations, you can reduce the chances of an employee mistake leading to a major liability issue for your company.

2) Safety Inspections

To ensure that employee and third-party injuries do not take place on your business’s property, conduct regular safety inspections of your company’s equipment and public spaces. During your inspection, look for things like faulty equipment, leaky pipes, uneven sections of flooring, and poorly lit areas. Having these issues repaired will reduce the chance of injuries. If your business manufactures or distributes products, make sure these products undergo rigorous safety testing as well. This will ensure that you don’t run into a major product liability issue.

3) Practice Safe Hiring Habits

All businesses that employ workers face the risk of employment practices liability issues. These issues arise when prospective, current, or former employees claim that your company has treated them wrongfully. Common employment practices liability claims include sexual harassment, discrimination, payroll issues, failure to meet the terms of the employment contract, and so on. To ensure that you don’t run into these issues, your company’s management should receive sensitivity training. Those in a hiring position should receive training to learn what they legally can and cannot do. Having an employment lawyer for your company is also a great way to ensure that you are not committing any errors that could turn into a major employment practices liability claim.

These are some of the steps you should take to reduce your business’s liability risk. Want another way to keep your business safe? If so, make sure you have the right commercial coverages in place. For assistance with all your business’s insurance needs, contact the experts at Desert Empire Insurance today.