By Kevin Sandelin
Imagine a beautiful day at the ballpark. A man stops by the concessions to grab some snacks and drinks with his kids. On the way back to their seats, he slips on a spilled soda and lands hard on his back. Just like that, the family’s day at the ballpark is ruined, as staff rush over and call for medical assistance.
As the situation unfolds, it becomes clear that the ballpark does not follow a premises inspection process and employees are unprepared to handle the emergency. Nor is the facility equipped with no-skid flooring to help prevent this type of accident. All are missed loss-control opportunities for managing exposures.
What is loss control?
Sometimes called loss prevention, risk control, risk prevention or safety consulting, loss control is risk management technique to reduce the chances of a loss occurring or to reduce the damage of a loss.
Loss-control service examples include:
- In-person/on-the-ground services, including safety inspections and surveys, trainings, manager meetings and loss analysis
- Remote/teleconference services, including training, demonstrations, loss analysis
- Online resources, including safety videos and document libraries
- Program development, such as an Illness and Injury Prevention Program (IIPP), safety programs and employee onboarding and training guidelines
- Digital risk management tools, such as Argo Risk Tech, which help policyholders help themselves and can be utilized by both policyholders and brokers
Who plays a part in loss control?
To create an effective loss-control program, it’s important to be in tune with the wants and needs of the players in loss control: policyholders, carriers, brokers and consultants.
For example, brokers should consider asking carriers the following questions:
- What services does the carrier provide (in person, remote, and/or online resources)?
- Are the carrier’s services fee for service or part of coverage?
- Does the carrier have digital tools for brokers and/or policyholders to use?
How to determine loss-control services
It’s important to consider the following factors when choosing the appropriate services to include in a loss-control program:
- The involvement of all the loss-control players
- Coverage type (general liability, workers compensation, property, auto, surety, etc.)
- Whether services are included or fee for service
- Past, present and future losses and exposures
- Trends in loss prevention, including digital risk management services, changes in the workforce and technology, and emerging exposures
What are the benefits of loss control to stakeholders?
Not everyone sees the value in carrier- or broker-provided loss-control services. But if loss-control services are curated and effective, their value will be evident. That is why it’s important to understand a policyholder’s operation in order to tailor a program that helps them reduce losses, and lower their loss ratio, total cost of risk and premiums. A well-crafted program serves as a tool for carriers and brokers to make sales, retain clients and differentiate themselves from their competitors.
Why is an effective loss-control partnership important?
Understanding the capabilities, wants and needs of the policyholder, broker, carrier and consultant is essential for building strategic partnerships. Determine who is providing which services and seek ways all the players in a loss-control program can supplement each other’s offerings.
In the end, a solid loss-control program relies on a clear understanding of what the policyholder wants and needs, which parties are involved, and what they offer. And when loss-control programs are effective, slips and falls at the ballpark (or the store, doctor’s office or workplace) are much less likely to occur.
Visit Ascend With Argo to learn more about the program’s education, insights and connections for early-career producers, and watch a replay of a webinar on mastering loss control.
Kevin Sandelin is director of risk management services for Argo Insurance, part of Argo Group.