Protect Your Business & Staff From Loss
You can’t get to the top alone. Every entrepreneur has to gradually transfer power and responsibility to their staff if they want to maximize overall growth. But there are many approaches to doing that, and they can yield very different results.
Here are a few pointers about keeping risk at a minimum as you expand your team:
Do your homework
No insurance policy is an adequate replacement for due diligence. Especially if you’re hiring for a senior position, it’s critical that you invest the right amount of time into vetting your prospects. Any insurance provider will want to see proof that you exercised a “reasonable standard of care” before they pay out on a claim.
All good things come slowly
It can be temping to delegate incredible amounts of authority to new employees right out of the gate, just given the pressure to free up your own time and energy. But the surest step to limiting employee-based risks is to be intentional about putting all fresh hires through a basic progression of responsibility. There are some bad eggs that you’ll simply never see coming. But there are many that identify themselves early on, if you’re looking for the right things.
Ensure that all employees have defined limits
Your employee contracts need to match your policy details. If you give a new hire broad signing authority, you’re assuming liability for their actions. If there are no written or legal limits on what they can do, your policy often won’t make up the gap.
Make risk-management part of the culture
How many employees in the average company are truly aware of the coverage that they operate under? Too few. Most assume that it’s there, and that they won’t be held personally liable if things go wrong. This is a hazard which can lead to unnecessary risks on their part. Help them to see things like an owner, by including risk-management and insurance review as part of their initial orientation; and, most importantly, by setting the right example at the top.
BrokerAge has a team of local partners and brokers available to help you integrate your new employees in a low-risk way. Book a meeting with them today.