Loss control, according to IRMI, is a ‘risk management technique that seeks to reduce the possibility that a loss will occur and/or reduce the severity if it does occur; also known as risk control or safety. Driver training programs are loss control programs that seek to reduce the likelihood of accidents occurring. Sprinkler systems are loss control devices that reduce the severity of loss by fire.’
The world we live in today is not the way it used to be, evolving more than anyone could have ever imagined in recent years. Organizations now face all sorts of risks and uncertainties. And it’s critical to have a backup to deal with such losses in the most organized manner. Having a backup does not mean the losses can be prevented altogether but that they can be controlled and stopped before they get any worse.
There are basically two prominent types of losses that include direct and indirect losses. The general liability insurance, auto insurance, workers’ compensation covers all your direct losses. But what about indirect losses like training costs, overtime, downtime, paperwork, fines and penalties? This is where the loss control insurance kicks in and helps an organization before it snaps.
Loss control services have diversified over the past few years. Whether it’s providing a safe and healthy work environment to an organization, identifying workplace hazards or safety and loss prevention materials for your business, loss control insurance provides coverage to all these.
Top-most insurance companies will include services in the following three categories:
· Accident Prevention
· Regulatory Compliance
· Carrier Service Coordination
The categories can be further broken down into automatic water-based sprinkler system, balconies and handrails, fire extinguishers, ladder safety tips, personal use of company vehicles policy, preventing back injuries, preventing commercial burglaries, smoking control program, statement of management policy, vehicle maintenance and inspection etc.
Organizations can either go with the in-house loss control solutions or the tailored ones. Based on your historical loss trends, operations, worksite hazards, safety culture etc, the consultants will come up with something just right for your organization, solutions that you can totally rely on and so can the employees.
Play Your Role!
Now that you understand what an insurance company can do for your organization, it’s equally important that you realize what your part is. When an organization faces a claim, it’s not always sunshine and rainbows. It can get real ugly and the feeling of loss of control will hit within no time. But if an organization plays its part well, there’s almost nothing to worry about.
Organizations should clarify the arrangements every now and then. They should always raise a question when they need to, respond to the insurers within the right time, monitor the progress, and in case of doubts, have a detailed discussion and understand what went wrong. Last but not least, an organization must get feedback. Feedback helps everyone in the circle to learn and do better.