Safety plays a key role in commercial insurance rates

July 10th, 2014 by admin

Enterprises that focus on safety benefit in numerous ways. From having employees be healthier and happier to lowering their insurance rates, a long-standing safety compliance record demonstrates a mind for success — and boosts the firm's reputation with consumers as well.

Beyond lowering insurance prices, there are numerous reasons to focus on safety. There are two primary challenges to safety compliance, audits and actual worker accidents. An audit can occur at any time and if one regulation isn't met, can result in fines and other issues down the road. Accidents in the workplace are more difficult to anticipate, but proper training and planning can almost entirely eliminate these risks.

Improving safety compliance can reduce monthly rates on property, workers' compensation and general liability insurance, but businesses have to focus not just on passing their next audit, but maintaining compliance over time.

The continued history of safety demonstrates to insurers (and consumers) that a business values not just profits, but its employees as well. Canadian Centre for Occupational Health and Safety (CCOHS) sets standard guidelines for workplace safety that are easy to meet, but companies also need to keep up with any upgrades and changes to these policies. This can be accomplished by maintaining safety training schedules with employees, prioritizing regular disaster drills and developing the right safety and security and business continuity planning that takes future needs into consideration, not just immediate ones.

Optimizing safety can have a profound effect on business operations. From enhancing job satisfaction to improving reputation with customers, a history of safety means more profits and less downtime overall. Once established, a company can reassess its insurance policy, get a lower rate and maximize its value over time.