7 Ways to Minimize Risk and Avoid a Claim Being Made Against You

Preventing claims not only helps keep premiums reasonable, it helps to avoid significant emotional and financial stress on you and your business. It is mostly important to identify specific types of internal risk and external risk and develop policies and procedures unique to your business practices to help prevent unfortunate events from happening. 

How To Minimize Claims Being Made Against Your Business

Below are ways to reduce your risk and help safeguard your financial stability:

    1. Ensure you and your staff are appropriately trained and qualified for treatments that you are performing. This includes the products and equipment you are using, which should only be used in the way they are intended following manufacturers instruction.


    1. Respond to any client complaints in an appropriate and timely manner, consulting with your insurer for professional advice first. It may be tempting to try to settle any grievances with a client immediately by yourself, however doing so may only aggravate the issue and could lead to a customer lawsuit against you.


    1. Occupational Health and Safety procedures are a must part of your risk management. Ensure that your clinic or salon space is tidy and free from hazards – good housekeeping standards are essential to minimize the risk of slips and trips.


    1. Regular inspection and testing of any electrical equipment by suitably qualified contractors to minimize a safety issue as well the risk of machine breakdown and electrical fires. Also use appropriate power boards with surge protection, and fire safety equipment and detectors.


    1. Secure your premises by installing adequate electronic security devices such as CCTV, intruder alarms and security lights.


    1. Put a risk management plan in place to prepare for severe weather conditions or a possible natural disaster that could result in business disruptions. Include reviewing emergency evacuation routes, testing fire safety detectors and maintaining the premises to protect it from flying debris.


  1. Conduct an annual review of your business risk management policies and procedures making sure that your staff are aware of potential risks and how to minimize and manage them should anything happen.

You can further safeguard against risks by making sure you have the right business insurance policies in place for your business.  Whether that is professional indemnity, public and product liability, building and contents insurance or business interruption, plus others.  For professional advice on the insurance policies that Sparrow Insurance offer take a look at our website or get a quick quote online today.