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How to Create a Loss Control Program for Your Business

How to Create a Loss Control Program for Your Business

Whether you run a construction company or a food service business, there are inherent risks involved. But with a loss control program, you can mitigate business risks and loss.

Key Points

In this blog, we’ll cover the following topics regarding loss control programs:

  1. What Is Loss Control in Insurance?

  2. Explaining Loss Control Programs and Insurance Companies

  3. Insurance Plans Required for Insurance Loss Control

  4. How to Create a Safety and Loss Prevention Program for Your Business

What Is Loss Control in Insurance?

By identifying potential sources of risk, insurance loss control provides you with the necessary knowledge and tools to reduce the likelihood of accidents or incidents occurring. Whether required or voluntary, taking steps to minimize risk is always a wise decision. And with insurance loss control, you can take control of your future and safeguard what matters most to you—your business.

Explaining Loss Control Programs and Insurance Companies

Loss control involves insurers assessing risks and making recommendations to policyholders to help them avoid filing claims. Incentives, such as lower premiums, are given to encourage policyholders to be more risk averse. For example, taking a driver’s education course can not only save you money on your auto insurance, but it also makes you a safer driver. Insurance companies may even require specific actions, like installing sprinkler systems or security systems, to reduce the chances of fire damage or theft. These loss control programs benefit both policyholders and insurers. Lower premiums for policyholders and reduced claim payouts for insurers mean more savings all around.

Insurance Plans Required for Insurance Loss Control

Insurance companies have loss control consultants who can help identify potential risks and vulnerabilities in your business operations. These consultants can play a crucial role in reducing claims and lowering premiums. Depending on your coverage, a loss control consultant may ask questions about your employees, hiring practices, or training programs, and even conduct facility inspections. It’s important to prepare for their visit by gathering any written risk control policies and procedures you have in place. Whether it’s workers’ compensation, commercial auto, or commercial property insurance, having the right safety measures in place can make a huge difference in minimizing losses. By having documented policies, such as hiring and disciplinary procedures, safety programs, and quality control practices, you can demonstrate your commitment to mitigating risks to the loss control consultant.

How to Create a Safety and Loss Prevention Program for Your Business

Creating a loss control safety plan is essential to not only protect your employees and assets, but also to keep your business goals on track. A strong program minimizes potential losses and reduces the frequency and severity of claims, which ultimately saves you money on insurance premiums. Plus, when your business is safer and manages risk effectively, it leads to increased profitability.

Below are the steps to create a business safety plan that can help you minimize loss and mitigate risks:

Hazard Analysis

Conducting a hazard analysis is crucial for identifying and preventing potential risks in your business. By breaking down complex jobs into simple steps, you can analyze each task and uncover any potential injuries or illnesses that could occur. Whether you choose to analyze by tool, individual job, job classification, or department, the goal is to create a safer work environment for everyone. Assign a person or safety committee to manage your company’s loss control program and perform routine worksite evaluations. Their reports will outline risks and provide actionable steps to correct any issues. Remember, analyzing hazards is not a one-time effort. Regularly reassess your workplace to ensure ongoing safety.

Employee Education Programs

Train your staff on safety protocols, emergency procedures, and proper use of equipment. These programs not only improve the company’s safety culture, but also empower employees to take charge of their own safety. To improve engagement, consider incorporating interactive elements, such as safety quizzes or workshops. A visually appealing and interactive session is more likely to capture attention and promote better understanding.

Emergency Planning

Emergencies can strike at any time, but with a well-defined plan in place, you can minimize the damage and keep your employees safe. Here’s how you can get started:

  1. Appoint someone to coordinate the pre-planning efforts. This individual will ensure that all necessary steps are taken to create a solid emergency plan.

  2. Identify the potential emergencies that could occur in your workplace, such as natural disasters, bomb threats, or workplace violence.

  3. Select the appropriate plan for each exposure. Action guides, response plans, and emergency management plans offer different levels of detail and guidance.

  4. Build a comprehensive contact list of organization names, addresses, phone numbers, and email addresses for emergency response resources.

  5. Draft your plan covering prevention, preparedness, response, and recovery. This will provide a roadmap for action during emergencies.

  6. Compile a list of necessary equipment, such as first aid kits, tarps, flashlights, and batteries, to ensure you have everything you need on hand.

  7. Lastly, include methods to regularly test and evaluate the plan to ensure it is up to date and effective.


Inspections are key to identifying potential hazards and ensuring policies are being followed. A useful tool is a checklist for life safety concerns like fire exits, fire extinguishers, first-aid cabinets, and more.

Accident Investigation

Accidents happen, but with a proper investigation, you can prevent them from happening again. By conducting a thorough accident investigation, you can gain a clear understanding of what occurred and implement preventive measures to reduce the likelihood of recurrences. When investigating an accident, start by filling out detailed incident reports and documenting any near-miss opportunities. It’s crucial to review your company’s hazard analysis and determine if anything identified was adequately assessed. Asking who, what, where, when, and how can help shed light on the incident. To ensure a structured investigation, consider using a formal written investigation form. Make sure to snap pictures of the accident area, damages, and any corrective actions taken.

Check out our blog to get answers to your most frequently asked questions about workers’ compensation insurance.

Key Takeaways

Whether you run a construction company or a food service business, accidents can happen, and injury claims can skyrocket. But don’t worry—Southpoint’s loss control services can help you mitigate the risks and protect your bottom line. Contact our experts today to learn more about our loss control services or visit CompWerks to get a quote in minutes.

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