Many new entrepreneurs believe that spending money on safety and insurance is a waste, and they should focus on growth instead of security. Most accidents that happen at the workplace have serious consequences for the entrepreneur, and can cause a damage to the reputation of the brand that can end a successful career. In case you are still sitting on the fence about taking out a liability insurance or creating a health and safety policy at the workplace, you will need to complete a thorough risk assessment to weigh your options and calculate the true cost of injuries and accidents at the workplace.
Financial Loss and Late Payments
If there is an accident at the workplace, or a customer is injured on your premises, you will need to face accident and injury claims. If you don’t have a liability insurance, or health and safety checks in place, you will be likely to have to pay a compensation to the person injured. If one of your employees drives a company vehicle and causes an accident, your company will be responsible for the damage and injury. Ask a car accident attorney about how you can prevent being liable for employees’ behavior on the road, and how you can protect your business.
If there is an accident on your premises, or caused by your company, you will be prosecuted, and the court case might become public. This means all your potential and current customers will be able to find out about your issues, and they might look elsewhere. A public accident court case can completely destroy your business reputation, and eventually cause financial ruin. You will have to make sure that you are protecting your business interest by making sure that risk assessments are carried out regularly, and your employees are trained on preventing injuries. You need to go beyond being compliant, and actively seek ways of preventing personal, environmental, or property damage that can potentially cost you thousands.
Once an accident happens, it is almost impossible to keep it a secret from social media. Your employees might share images, or the person injured will tweet about your company and blame you for the negligence. Unfortunately, there is not much you can do against the reputational damage caused by social media posts, and even if you take legal action, by the time the results are delivered, your reputation is ruined. Make sure that you talk to your employees about the responsible use of social media, and train them on the best practices.
Accidents can attract the attention of regulators, and officials might start a thorough investigation. If you are found guilty of negligence, you will be asked to pay a fine, as well as facing other penalties and sanctions. If the authority can prove that you didn’t follow the industry and government guidelines, you will be prosecuted. This will increase your expenses, and -on top of the fines – can cause long term financial difficulties. Prevention is always cheaper than dealing with the consequences, therefore, compliance issues should be taken seriously in your business.
Low Work Morale
An angry employee can turn your entire workforce against you, and cause damage to your reputation. Your workers will only hear one side of the story, and automatically assume that your company doesn’t care about employees. This will damage your relationship and leadership effectiveness, and cause low work morale. Unhappy employees are more likely to be distracted, and their performance will drop. You will have to work hard to regain the trust of your workers after an accident at the workplace.
Losing Your License
Image by PxHere
If the accident or injury is serious, your state or industry authority might decide to revoke your license, and make you go out of business. You might even get banned from working in the same industry for a set number of years, or forever. This will be the end of your business and livelihood that you worked so far for all your life.
You can cause damage to your business, as well as your employees and the public, if you don’t pay attention to the guidelines and ignore industry recommendations. Your reputation is your most important asset, and losing it is much easier than rebuilding it. Before you make a decision on your health and safety policy, make sure you consider the risks of injuries and accidents and the consequences they bring.