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Risk Management Tools for Manufacturers

Insurance is what sets the successful business apart from those who often wind up failing. Because lawsuits are prevalent in today’s climate, any company that lacks coverage or is underinsured is potentially putting their business at risk. Without proper insurance, many businesses end up being forced to close their doors due to costly settlements, eventually leading to bankruptcy.

 

In the manufacturing industry, which is diverse and complex, aside from the need for manufacturer insurance, there’s also a need for a solid risk management plan aimed at reducing the risks and exposures associated with this line of work. Manufacturing facilities are often exposed to claims for everything from faulty products to negligence, and many other areas where litigation winds up being the end result.

 

Risk management begins with safety

 

There are some inherent risks related to working in a factory, and many of the dangers may come about unexpectedly. Having proper precautions and safety procedures in place can help to ensure that employees are presented with a safer workspace. In order to reduce workers’ compensation claims, make safety a priority by having a safety manager. He or she should conduct weekly meetings, allowing workers to voice concerns and even come up with solutions to issues they often face. Their observations may go a long ways towards creating a safer, as well as happier, work environment.

 

Provide safer working conditions

 

Every manufacturing facility is different and so workplace conditions will likely vary as well. Depending on the type of facility that you currently own or operate, specific rules should be in place regarding the safe handling of materials and a list of safe practices in general.

 

Workers should be made aware of the dangers of loose clothing and hair, wearing jewelry that could potentially get stuck in machinery and cause them injury, and the dangers of the lack of proper footwear. You may want to institute a “no open-toed shoes” policy. In order to reduce injuries, the proper gear, clothing, and safety wear must be required to be worn or used at all times.

 

Having manufacturer insurance in place, along with a commitment to sound risk management, will help ease many of your own concerns and better position you to deal with new and growing concerns as they emerge onto the landscape.