Steps To Take To Minimize Personnel Loss Exposures

In the previous post I identified personnel loss exposures and specifically identified 3 groups; individual employees, owners and managers, and groups of employees. I had pointed out that besides the standard insurance risk management, as related to property and liability, it was also important for the small business owner to focus in on personnel related loss issues and the potential ramifications related to their loss. The first step in analyzing this exposure would be to identify your personnel and their particular exposures to loss. There are many different causes of loss, from death, disability and resignation to retirement and workplace hazards. Once you have identified the actual possible causes of loss, you would then proceed to figure out the possible financial consequences involved with that person, or persons, loss. The consequences can include the loss of the value the employee contributed to the organization, the cost of replacing that employee or employees, and the possible resulting increased insurance premiums from workers compensation and liability insurance. Once you have a handle on this, you can plan accordingly by either purchasing key person insurance for those of vital and specific importance to the company, or through increased safety training and awareness. By planning before something happens, you will have identified potential losses, and costs involved, and be able to budget accordingly to take the necessary risk management steps to deal with it in the future.