Growth Strategies

Safety Dance

Get policies in place now, and avoid liability later.
Magazine Contributor
2 min read

This story appears in the November 2003 issue of Entrepreneur. Subscribe »

Setting policies to address potentially risky situations can be your best insurance when it comes to defending yourself against a claim. If you demonstrate you've done due diligence in terms of protecting people and otherwise diffusing potentially risky situations, you're in a much more defensible position in the eyes of a judge or jury, says Al Nagelberg, president of Albert Risk Management Consultants, an independent risk management consulting firm in Needham, Massachusetts.

Let's say someone slips and falls on your property on a snowy day and sues you for not removing the snow. If you had a snow-removal policy, you could clearly show you were aware of the potential risk and took steps to minimize it-reducing the likelihood you would be held liable for damages.

The benefits of being proactive are significant. First, notes Nagelberg, your loss ratio is a key driver of your insurance rates, so reducing or eliminating losses keeps your premiums down. Because many insurance consumers are accepting higher deductibles to contain premiums, reducing your liability exposures directly reduces out-of-pocket costs.

General areas where you should have procedural policies include: employment practices, property and equipment management, Internet use, cell phone use, vehicles and workplace safety. To figure out what policies you need and how to create them, contact a risk management consultant, an insurance agent or an insurance broker.


Jacquelyn Lynn is a freelance business writer in Orlando, Florida.

More from Entrepreneur

Grow Your Business at Entrepreneur LIVE! Join us on Nov. 16 in Brooklyn, NY, to learn from legends like Danica Patrick and Maria Sharapova, pitch our editors, meet with investors, and potentially walk away with funding!
Register here

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.