Workplace and Work-Related Accidents: Best Business Practices for Mitigating and Managing Risks

Doing business is an inherently risky endeavor, but for agricultural, construction, manufacturing, mining, transportation, and industrial businesses, the risk is even higher. These industries are rife with safety hazards which can result in potential workplace and work-related accidents. The following article identifies and discusses best strategic risk planning and management practices.

Conducting a formal, written risk assessment is the starting place for any successful risk management plan. Depending on your business needs, a risk assessment may be performed by management, a third-party consultant, legal counsel, or a combination of all three. Risks come in all shapes and sizes and are unique to your business goals and objectives, the personnel used to perform the work, the facility and/or geographical location where the work is to be performed, and the materials, equipment, and technology used to perform the work. With these factors in mind, a risk assessment requires the business to:

• Identify business goals and objectives;
• Identify financial resources and assets;
• Identify and prioritize workplace and work-related hazards, risks, and threats;
• Identify steps to be taken to minimize work-related hazards, risks, and threats;
• Develop a risk mitigation plan aimed at minimizing and managing work-related hazards, risks, and threats;
• Document the results of the risk assessment;
• Educate management, employees, and third parties about the assessment results and plan;
• Implement and monitor compliance with the plan; and
• Review and re-evaluate the plan periodically after it is implemented.

RISK SHIFTING

Strategic risk planning and management include the identification, evaluation, and use of risk shifting opportunities. The most common ways to shift business risks are through: (1) insurance; and (2) contracts.

As part of a risk management plan businesses can purchase a broad range of insurance policies to insure around workplace and work-related risks, including commercial general liability, commercial property, builder’s risk, directors and officers, professional liability, automobile, business-interruption, and environmental site liability policies. All businesses should secure appropriate insurance coverage to protect against potential liability and ensure business assets are protected.

Parties to a non-insurance contract may agree to shift certain risks of liability from one party to the other. This is frequently done through contractual indemnity, damages and liability limitations, payment, and waiver of subrogation provisions. Every provision of a contract is negotiable and management and employees should be educated on the ways that contracts can be used to limit business liability.

Any successful risk management plan must be communicated to management and employees tasked with implementing the plan. Businesses should draft and develop workplace policies, procedures, and handbooks addressing risk mitigation and regulatory risk compliance requirements. Businesses should also engage in job training and development aimed at minimizing and mitigating workplace and work-related risks.

If a workplace or work-related accident occurs, a successful risk management plan will address the pre-litigation claims and investigation process. A business will need to gather and preserve evidence, find experts, draft notice and demand letters, attend pre-filing mediation, and negotiate with potential plaintiffs, defendants, and insurance companies to resolve disputes without the need for litigation or arbitration when possible. The business may also need to comply with state and federal reporting requirements. Involving an in-house or outside attorney early in the process is advisable.

When a settlement is not possible because the opposing parties are not being reasonable, businesses need to be prepared to hire an attorney, litigate, and vigorously defend their rights in arbitration proceedings or in state or federal courts.

BHGR’s Personal Injury Group has significant experience advising business clients on risk management strategies, best practices, and with obtaining adequate insurance coverage. We also help businesses navigate workplace and work-related accidents, investigations, reporting, and notice requirements, work with insurance companies, and defend our clients from personal injury claims.