General Liability: Loss Control/Claim Prevention
You may have noticed a trend in my posts, CLAIM PREVENTION, that's because it's that important and is a wide reaching issue. Claim prevention, also known as loss control, is specific, necessary, and unique for each line of coverage, and if done effectively can save you money on your premiums. Since claims can effect General Liability (G/L), Worker's Compensation (W/C), Automobile (Auto), etc, it's important to educate yourself as a business owner or manager on each. I've covered some aspects of Auto & W/C in previous posts, so it's time for me to touch on G/L. *For more information on what G/L is, refer to my previous posts*
The best way to prevent G/L claims starts right at the beginning, the hiring process. One of our top carriers and the one we work the most with offers these 7 pieces of advice during the hiring process. They consider these 7 tips to be the "Best Management Practices for Pest Employees." Keep in mind, these hiring practices can help prevent all types of claims, not just G/L.
1. Use of legal and appropriate application form (EEOC and state compliant)
2. Successful personal interview: use of description of specific job duties (including driving)
3. Conditional job offer, pending satisfactory employee screening, consisting of:
-Criminal background check
-Motor Vehicle Report
4. Completion of State Second Injury Fund form (if applicable, important for WC protection; kept in a separate file)
5. Confirmation of and receipt for employee handbook 6. Fit testing and physician confirmation for any applicable Personal Protective Equipment 7. Initial testing, registration and documented training as required by state pest management regulatory agency
These simple, yet often ignored steps, can save you a lot of time and money in the long run. Nothing can ruin a company worse than claims, your insurance premium is one of your biggest expenses as a company, and being able to keep your premium at a minimum is CRUCIAL to running a profitable company. Remember, our job is to help place coverage for you, but also work with you to keep your costs low and do what we can to keep your company running effectively. Some other tools that can help make your hiring process more effective:
-Driver Education Course and Documentation
-GPS/driver behavior monitoring and reporting
-Employee handbook development
-Pest management training and education Thank you!
Derek I. Jimenez
Caldwell Insurance Agency Inc.