Beckworth Beneficial Blog

Posted by: Admin

Posted on: Aug 31, 2023 at 11:41 am

What Are the Top Employee-Related Risks for Business Owners?

Business owners face various challenges that may impact their organization. Although employees are a business’s most valuable assets, they can also be a source of vulnerability. Employees provide their skills, knowledge and dedication; however, they may also make mistakes that could expose a business to risks that can have a negative impact. It’s essential to be aware of employee-related risks to mitigate and prepare for them.  

Employee-Related Risks for Business Owners and How to Avoid Them 

The following are common employee-related risks and how you can help avoid them: 

• Drug and alcohol use - Employees who work while impaired risk injuring themselves, others or making costly errors. Ensure that employees know drug and alcohol use on the job will not be tolerated and may result in termination of employment. Information on the topic should be included in the employee handbook and reviewed during the onboarding process.
• On-site injuries - Injuries are common in many industries and can put a business at risk for lawsuits and employee absence. Putting proper safety precautions, educating employees on safety policies and implementing signage and frequent reminders of safety procedures is essential.
• Discrimination - Discrimination is one of the most significant employee-related risks that can have detrimental consequences. Organizations need to communicate that discrimination is never tolerated through frequent companywide training.
• Sexual harassment - If an employee engages in sexual harassment, they open themselves and their organization up to severe consequences. Employers should conduct frequent sexual harassment training and communicate that there is a zero-tolerance policy for such behavior.
• Physical theft - Employee theft can be a problem for businesses, resulting in lost profit and lawsuits. Businesses must monitor valuable assets and ensure that only essential employees can access product inventory, electronics, safes and company cards.
• Data theft - Employees may have access to customer data to steal for their own gain. This should be prevented by monitoring employees carefully and ensuring that only those needing access to this data have clearance. Customer data should not be accessible to those who do not need it to complete their daily tasks.
• Damaging customer property - If your business operations involve going to a customer’s home or working with their personal property, there may be accidents resulting in the damage or destruction of their personal belongings, resulting in lawsuits and reputational harm. This can be avoided by educating employees on the proper procedures when working with third-party assets.
• Failing to meet compliance standards - Employees who do not follow a business’s established guidelines and specifications can open up an organization to errors and potential lawsuits or fines. It’s essential to enforce compliance to avoid these issues.

How to Protect Your Business From Employee-Related Risks 

A robust business insurance portfolio is the best way to protect your organization from employee-related business risks. Different types of liability coverage options may provide protection from costly incidents. Contact Beckworth Beneficial to discuss risk management solutions.