When you buy business liability insurance, you effectively ‘pass on’ some of your more onerous business risks to your insurance company. In essence, the insurers bear the brunt of the financial consequences that flow from your mistakes.
Typically, their potential exposure is enormous: up to €13m per accident on a standard employers’ liability insurance policy (though usually less with public liability cover).
Naturally, insurance companies expect you to limit their exposure. And the best way of doing this is to have a proper safety system in place.
A ‘risk management’ programme is to an insurance company what ‘collateral’ is to a banker. It provides essential security and comfort. Without it, you simply won’t secure the best possible insurance deal.
Indeed, without a ‘risk management’ programme, you could end up perpetually paying over the odds for your business liability insurance cover.
Conversely, if your safety regime lowers the insurer’s risk, your premium could drop considerably.
Put another way, safety pays for itself: it is truly a blue-chip investment.
It’s very important to emphasise that safety doesn’t have to be expensive, time-consuming or complicated. In reality, your attitude to safety is the critical element in any safety programme.
Click here to find out practical steps you can take to really impress your insurance company
