As a smart business owner, you do everything you can to make sure your business is properly protected. You have business insurance to protect you in case of a loss. But how do you minimize the chance of a loss in the first place? The answer – by incorporating a loss prevention plan.
What is a loss prevention plan?
It is a plan that includes policies and procedures that will protect your business before potential losses occur. This plan not only works toward minimizing the chance of loss in the first place, but it also ensures you have the right business insurance to protect your business in case of a loss.
Why should your business have a loss prevention plan?
- It decreases the risk of loss up front.
- It reduces the disruption in your operations if there is a case of loss.
Your loss prevention plan should be as unique as your business. The nature of your business will determine the specific exposures you could be at risk for.
Below, our loss prevention plan checklist covers the most common risks for businesses. However, we recommend adapting the checklist to meet your individual business needs.
Loss prevention checklist:
- Install a reliable fire detection system with smoke/heat detectors.
- Keep valuable documents and records in fireproof cabinets and, where possible, keep backup copies off-site.
- Ensure there is physical protection on windows and doors in all areas of the premises (including loading bays).
- Use an insurer-approved monitored security system.
- Maintain proper audit trails for all business assets, including stock and monetary instruments (credit cards, cash, cheques, etc.).
- Ensure all laptops are password protected.
- Lock and secure laptops when they are not in use.
- Ensure your business has cyber insurance measures in place to protect your data and customers’ personal information from hackers.
Health and Safety
- Organize a Joint Health and Safety Committee within your business in order to: raise awareness around workplace health and safety issues; recognize and identify risks in the workplace; and develop recommendations to address these risks.
Business Continuity Plan
- Create a Business Continuity Plan to ensure your business has both the resources and information required to deal with any potential disasters and emergencies.
You know what’s right for your business, and when it comes to ensuring you have the right insurance coverage, we can help.
For a customized review of your business insurance needs, speak with a commercial insurance expert at one of our locations.