Loss prevention is a critical part of protecting company assets, making loss prevention coverage a key investment in commercial insurance. However, not all businesses are created equally, and getting the best rates on your policy will require some legwork.

Loss prevention premiums are based on an experience modification rate (EMR). The lower the EMR, the less the monthly policy rate will be. This rate is based on claims and payouts within a three year window, and is recalculated every year to remain up-to-date. Any new incidents or claims on your policy will be totaled in, changing your premium for the following year. This makes keeping your EMR low a key focus for safety and insurance strategizing.

For most companies, the best way to reduce risk is to invest in safety training and CCOHS compliance efforts. Loss prevention policies will benefit from employees being proactive about risks, identifying and managing the challenges that could impact workflow and efficiency, as well as the safety of employees and customers.

Another critical side of loss prevention insurance is claims management. Much like homeowners and car insurance, companies need to be sure to properly document and photograph and incidents in order to file a full claims report and minimize the time it takes to receive a payout.

Safety standards developed by CCOHS, as well as simply training employees to be mindful, will help eliminate safety risks in the first place, but companies still need to invest in high-quality loss prevention coverage to eliminate loss from unavoidable problems. 

Compliance, coupled with thorough claims management processes  and a high-quality loss prevention policy, can keep your employees and customers safe and secure as operations continue.