Sometimes when we see a business shuttering its doors, we automatically assume it was from a lack of revenue. We assume they weren’t making the sales necessary to realize a profit. Unfortunately, that isn’t always the case. There are times when they suffer from financial debt resulting from liability in an accident or from inflicting harm, in some way, to a person, people, or another business. Suppose you are a business, small, medium, or large. In that case, it pays to understand how you can experience those high dollar losses that can, and often will, bankrupt you unless you are prepared to meet them.

The First Step Is Training

Some of the time, accidents — a leading cause of high dollar losses — could have been prevented with the proper training. This is why OSHA exists and why there are certified training courses for literally every industry out there. In addition, the Occupational Safety and Health Act of 1970 was enacted for workplace safety, and if an employer is found to be non-compliant and employees are injured, they could be open to a hefty lawsuit resulting in substantial losses. 

Sadly, OSHA only relates to the employer/employee safety relationship, not the general public. Still, as an extension, the safety measures those employees learn could, in fact, save the lives of the general public as well. In other words, even though OSHA does not regulate safety as it relates to the general public, there are times non-compliance with safety regulations can result in injury to members of the general public as well as employees, which is why safety training is crucial in any occupation where dangerous conditions could exist.

Reevaluate Your Insurance Coverage

In a situation where any action or omission could cause extensive bodily injury or property damage, you have general liability insurance and commercial auto insurance. However, is your policy really sufficient to cover high-dollar losses? This would be the time to consider purchasing what is called commercial umbrella insurance, which can extend the coverage of your current commercial liability to amounts between $1 million and $15 million.

In fact, a commercial umbrella policy can also extend the coverage of policies from other insurance providers, which is good to know if your current insurer doesn’t have terms that you are comfortable with. Just because you have general liability from Insurer A doesn’t mean you can’t purchase commercial umbrella coverage from Insurer B. 

The Buck Stops with You

To borrow an often used cliché, the buck really does stop with you. Training can go a very long way in preventing accidents, but even the very best training cannot prevent all accidents. That’s why they are called accidents in the first place! They are unintentional, and even the best-laid plans can fail. Take the time to research some of the bankrupt companies due to the inability to pay claims, and you will see that it is no small matter in the United States. The very best way to guard against high-dollar losses that can quickly bankrupt you is a combination of training and adequate insurance coverage. Spending a little more today to meet both those goals could prevent you from losing everything tomorrow. Consider it an investment in the future of your company.