The Business Case for a Safe Workplace

Every business has industry-specific risks that can threaten safety and productivity. The simple and necessary act of protecting your employees from health and safety risks makes for healthier, happier and more productive employees—who, in turn, make your business more successful. Maintaining effective workplace health and safety can generate the following business benefits:

  • Reduced absences—Improving workplace health and safety measures reduces employee absences and sick leave. Simply put, healthy employees miss fewer working days. Minimizing employee absences and sick leave saves money on both direct and indirect absence costs.
  • Lowered insurance costs—Maintaining an ideal standard for your workplace health and safety programs can help lower your insurance premiums. A top-notch workplace health and safety program can lower the number of accidents in your workplace, thus reducing employers’ liability premiums.
  • Improved productivity—Workplace stress and accidents are two of the biggest causes of absences. Whether they cause short, unscheduled absences or long-term illness, they can have a serious impact on your productivity and profits.
  • Protected reputation—Preventing accidents and ill health helps you maintain a caring reputation for you and your business. Just one workplace accident or scandal can tarnish that hard-earned reputation. A blemish on your business’s reputation can be hard to remove and can include fines, negative public opinion, plummeting sales and media scrutiny.

Exemplary health and safety not only equips your business for future growth, but it can protect you from the costly fees associated with workplace exposures.

4 Reasons to Purchase Product Liability Insurance

Your customers expect you to have safe and reliable products, and failing to meet these expectations can lead to huge financial losses. If one of your products harms a customer in any way, they can sue your business, leading to costly legal fees and settlements. These costs can easily reach six figures. While you may do everything in your power to ensure your products are safe, mishaps can still occur without warning. Here are four specific reasons why you need product liability insurance to protect against claims and ensure the longevity of your business:

  1. Coverage for manufacturing or production flaws—One of the key features of product liability insurance is its coverage for manufacturing or production flaws that cause unsafe defects in the product.
  2. Protection against design defects—Even after product testing and trial runs, potentially dangerous defects can still appear long after production. Product liability insurance can provide coverage for design errors that make goods unsafe for use by the public.
  3. Response for packaging and warning issues—In the event that you fail to provide adequate defect warnings or instructions for using the product, your company can be sued. These claims arise when products are not properly labelled or have warnings that are not explanatory enough to reduce consumer risks while using the product. Product liability insurance helps organizations prepare for and litigate these types of claims.
  4. Supplemental commercial general liability (CGL) coverage— Generally, there is limited product liability protection under a CGL policy, yet it may not be enough coverage to adequately protect your business. Product liability policies work alongside CGL coverage, providing protection against losses caused by malfunctions or defects in your products.

Product liability is a complex exposure and managing your risk can be a major undertaking, even if you have access to all the right resources. To supplement your risk management strategies and address specific exposures, speak with a qualified insurance broker to review your insurance coverage.

The simple and necessary act of protecting your employees from health and safety risks makes for healthier, happier and more productive employees.

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