Risk Control Services: A Practical Guide for Hawaiʻi Business Owners

Many business owners in Hawaiʻi don't carve time out of their weekly schedule to identify risks in their operations. Unfortunately, unexpected accidents and losses can disrupt operations and affect your bottom line. Although unexpected, these incidents could be preventable, if you know what to look for and how to prepare. 

Risk control is a proactive service that commercial insurance carriers like Island Insurance provide to help businesses identify hazards, reduce losses, and manage exposures before a problem turns into a claim. 

What is Risk Control? 

Risk control is a risk management process that helps to reduce losses and lessen the severity of them. It is closely tied to a concept called loss control, which focuses on reducing both the number and size of losses a business experiences. According to the Insurance Information Institute, effective loss control may impact both the availability and affordability of insurance [1]. A business that pays little attention to loss control may end up with a higher than average number of claims, and a poor loss history can make it harder to find coverage at all. On the other hand, businesses that actively manage their risks tend to file fewer claims and may see those efforts reflected in lower insurance premiums [1].  

Risk control is not limited to one type of insurance. It can support several lines of commercial coverage, including: 

• Package policies – which bundle multiple coverages, like property and general liability, for businesses. 

• Commercial auto – covering vehicles used for business purposes. 

• Workers' compensation – which covers employees injured on the job. 

• General liability – protecting against third-party bodily injury, property damage or personal injury claims. 

• Other and specialty lines – depending on the nature of your business. 

How Does Risk Control Help My Business? 

Risk control provides resources and support to help policyholders in three key ways: 

1. Identifying Potential Risks: A risk control assessment helps businesses spot hazards they may not have noticed. This could include unsafe work conditions, gaps in employee training, or processes that create exposure to liability. Catching these issues early gives businesses a chance to fix them before an accident occurs. 

2. Resolving Those Risks: Once risks are identified, risk control support can help businesses take action. This might involve recommending safety improvements, providing guidance on industry best practices, or connecting businesses with useful resources. 

3. Helping Keep Costs Lower: Fewer claims over time may positively affect your insurance premiums. According to OSHA, effective safety and health programs can reduce injury and illness costs by 20 to 40 percent [2].  

Risk Assessment and Safety Program Development  

When available, one of the more hands-on services that Island’s Risk Control can offer is the risk assessment. These assessments bring together Risk Control Consultants and management from the business to discuss operational exposures, review safety procedures, and work toward implementing safer work practices. These assessments assist Underwriters with their exposure analysis and pricing decisions, and help customers to better manage and control their accident and loss experience. 

From there, businesses can work with Risk Control to implement safety activities and develop a safety program, which is a structured, written plan for managing and controlling risks specific to their operations. A good safety program typically covers: 

• Identifying who is responsible for safety in the organization 

• Procedures for reporting and investigating incidents 

• Training plans for employees, and 

• Steps for correcting identified hazards 

The U.S. Department of Labor notes that workplaces with strong safety programs see lower rates of injury, higher employee morale, and reduced costs associated with turnover and lost productivity [2]. For small and mid-sized Hawaiʻi businesses, having a documented safety plan can also demonstrate due diligence in the event of a claim or legal dispute. 

Who Qualifies for Risk Control Services? 

Risk control services are not automatically available to every commercial insurance policyholder. Eligibility may depend on factors such as the size of your account, the type of coverage you carry, and the nature of your business operations. 

If you are interested in learning whether your business qualifies for risk control services, the best first step is to reach out to your local independent insurance agent. They can review your account, work with your insurance carrier, and let you know what resources may be available to you. 

Disclaimer: The information in this article is intended for general informational purposes only and does not constitute legal, safety, or professional advice. Island Insurance makes no guarantees regarding specific outcomes, including the prevention of workplace injuries or changes to insurance premiums. Businesses should consult qualified safety and legal professionals when developing risk management programs. 

Sources  

1. Insurance Information Institute. Risk Management Basics: Insuring Your Business. https://www.iii.org/publications/insuring-your-business-small-business-owners-guide-to-insurance/risk-management/risk-management-basics 

2. Occupational Safety and Health Administration. Safety and Health Programs: Benefits. https://www.osha.gov/shpguidelines/benefits.html