Holiday Loss Control Tips for Business
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor
With the hustle and bustle of the holiday season, loss control and risk management may be relegated to the back burner for small business owners. However, this is exactly the time when such practices are most needed. Helping clients understand and practice risk management and loss control, during the holidays as well as the rest of the year, is another value-added service of the professional insurance agent.
A National Retail Federation study estimates that holiday shopping by Americans will be more than last year, exceeding $720 billion (www.investopedia.com). Advertising is a way to attract clients to a store or website. However, this is not a job to be taken lightly. While it may be cheaper to use your college-aged nephew to create the website or plan a marketing campaign, it might not be cheaper in the long run. Choosing a professional who understands the legal requirements that apply to your local community and type of business will help avoid overstepping the boundaries and ensure compliance with truth in advertising regulations. Advance planning is key to a successful campaign. Advertisements, deals and special promotions should be designed well in advance to avoid errors that come with a last minute rush.
Brick and mortar stores are exposed to additional hazards not encountered by online merchants. Housekeeping must be a high priority. In addition to being more visually appealing, a clean business is a safe business. Foot traffic brings hazards of trip and fall claims, both inside the store and in the parking areas and access ways. More than one million people visit emergency rooms each year as a result of slip and fall claims, at a cost of more than $30,000 per visit. Snow and ice-related falls average $33,000 to $48,000 per visit (www.askadamskutner.com). Customers are not the only victims, as slip and falls are a leading cause of injuries to employees (https://nfsi.org). Add to this time loss from work for the employee and anyone else who may have to take them to the hospital, plus the time to complete paperwork, and it is easy to see that such incidents should be avoided whenever possible.
All areas should be kept clear of ice and snow. Spills inside the store should be cleaned promptly. Access to areas that pose a hazard should be blocked off using such measures as barricade tape, cones or safety signs. Avoid overcrowded aisles that may cause additional hazards. Local weather should be monitored so that proper planning for snow/ice removal can be done. Wet umbrella bags will reduce water accumulation on the floors. An alternative might be a check in station for umbrellas.
Shoplifting is an all too common occurrence, averaging over $35 million per day ($13 billion per year). It is estimated that 1 in 11 people shoplifts during their lifetime (www.hg.org). This is especially true during the colder months when people have more layers of clothing in which to hide merchandise. Means of prevention include proper lighting, security tags, warnings and restricted access.
While some store owners may want to enhance the “mood” with lower lighting, this may make it easier for customers to hide items in their clothing or bags. In addition, dim stores may increase instances of people walking into displays or tripping. Warning signs that outline the consequences of shoplifting may deter someone from attempting to steal merchandise. Closed circuit surveillance is another component of a successful loss control program.
Most items can now be tagged with chips that provide information on where and when the item was stolen. Expensive or easy to conceal items, such as jewelry, should be secured in a locked case whenever possible. Apple has even added theft detection technology to its phones. Maintaining an up-to-date inventory is also crucial. With today’s technology, this makes it easier to detect that something has gone missing. Controlling access to fitting rooms, and limiting the number of items that can be taken in at a time, also helps reduce shoplifting exposure.
Interaction of employees with customers may help reduce theft, and also increase sales. Customers who feel they are being watched are less likely to steal, and if someone takes the time to help, this may prompt them to buy more. Keeping a clean and tidy store may also deter theft, since a messy store is an indication that management and employees are not paying attention to their surroundings.
While the holiday season brings increased sales and increased exposure to loss, risk management and loss control should be an integral part of a business’ year round management system. Helping clients integrate these systems into their normal operations is another sign of the true insurance professional.
