Want Lower Insurance Costs? Make Safety a Priority

No matter how careful we are, we cannot always predict what might happen to our property, our customers or our employees. For example, who could have predicted the following claims (that actually occurred)?

• A customer pulls in to a self-service carwash bay, gets out and puts money in the acceptor without taking the wand out of the holster. For some reason, the trigger is stuck in the “on” position. Water pressure blows the wand out of the holster. The wand flies around, hitting the customer and his vehicle, resulting in both bodily injury and car damage.
• A person is driving down the street when his pickup catches on fire. He pulls into a self-serve bay to put out the fire. The fire spreads to the building and there is heavy damage.
• A man washing his vehicle steps on a crooked grate that gives way. The man falls into the pit and is injured.

With a safety program in place, a carwash owner could have avoided at least two of these incidents. Some of the most common problems are “slip, trip and fall accidents” — the majority of which are preventable. Both customers and employees are susceptible to falling and sustaining injuries. It can happen almost anywhere: level areas, ramps, stairs or elevations. Slippery walking surfaces and defects such as raised edges, cracks, gaps and holes are some of the common contributing factors. Have you done a “slip, trip and fall” hazard self-assessment recently?

Why not do one now? To determine how you rate, ask yourself the following questions.

1. Do I regularly review walking surfaces? Avoid installing surfaces that are likely to be slippery when wet, such as terrazzo, ceramic, tile, marble and granite. Replace surfaces that are damaged or hazardous. Do not purchase maintenance supplies that increase hazards.

2. Do I act proactively to reduce slip-and-fall hazards? Install protective equipment such as railing, warning signs and guardrails. Redesign walking patterns to reduce or eliminate hazards.

3. Do I educate my customers and employees to prevent accidents? Consider including the following suggestions in your education program. (Keep in mind that a program is more likely to be successful if employees are allowed to give input.) 

• Provide information about possible hazards.
• Post appropriate signs.
• Train maintenance personnel to prepare surfaces properly.
• Assign specific inspection responsibilities.
• Encourage customers and employees to report hazards.

Even with safety inspections, incidents will still occur. What can you do, then, to reduce your exposure to financial loss? Most of us purchase insurance plans. Knowing what is not insured provides you an opportunity to make an educated decision regarding your level of risk tolerance.

Here is a list you may want to use when discussing your current or potential coverage with your insurance agent.

• Named Insured: Be sure all entities with financial interest are included either as “named insured” or “additional insured.”
• Insurance Company: Check the financial rating of the company. You will also want to learn if it is a “standard” or “excess” market.
• Liability Limits: Review the limits for each occurrence and the maximum amount your policy would pay for all claims annually. Are these limits high enough to protect your financial responsibilities in the event of a claim?
• Type of Policy: Is your policy written on an “occurrence” or “claims-made” basis?
• Additional Exposures: These can include per-location aggregate if you have more than one location, leased workers, vendors, employee benefits liability and more.

In working with your insurance professional, you may identify additional areas of concern. Remember, it is more important to know what is not covered than what is covered. The last thing you need at the time of a loss is to find out that the loss could have been covered.

You will most likely not want to purchase coverage for every potential exposure to loss. But with an effective safety program in place, as well as an insurance checklist, you can make deliberate decisions  before it is too late.

You cannot always predict what might happen to your property, your customers or your employees. You can, however, take steps to create a safer, more economically sound business atmosphere. It’s up to you to take control.

Scott Brothers is president and CEO of The Insurancenter in Joplin, Mo. The Insurancenter has been insuring the car care industry for more than 20 years, and is a writer of carwash insurance nationwide. 

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