A customer slips and falls at your business. An employee accidentally damages a customer’s property. Someone claims that your business caused an injury or other loss.
When something like this happens, knowing what to do next can help you respond appropriately and preserve important information.
Here are several steps Florida business owners should consider after a potential liability incident.
1. Make Sure Everyone Is Safe
The first priority is addressing any immediate safety concerns.
If someone is injured, seek appropriate medical assistance. If there is an ongoing hazard, take reasonable steps to prevent additional injuries or damage.
For example, a business might need to close off a wet floor, remove a damaged piece of equipment, or otherwise address the immediate hazard.
2. Document What Happened
Write down what happened as soon as possible while the details are still fresh.
Include information such as:
- Date and time of the incident
- Location
- People involved
- What happened
- Any injuries or property damage reported
- Names and contact information of witnesses
- Actions taken immediately afterward
The goal is to create an accurate record of the incident rather than relying on memory later.
3. Take Photographs When Appropriate
Photographs can provide useful documentation of the conditions surrounding an incident.
Depending on the situation, photographs might show the location, equipment, property damage, signage, or other relevant conditions.
Businesses should also preserve existing records that may be relevant, such as maintenance records, inspection logs, or video surveillance.
4. Avoid Speculating About Fault
Business owners and employees may feel pressured to explain what happened or determine who was responsible immediately.
It is generally better to stick to the facts.
Avoid making assumptions about fault or promising that the business will pay for someone’s expenses before the situation has been properly evaluated.
A simple factual account of what occurred is generally more useful than speculation.
5. Notify Your Insurance Company
If an incident could potentially result in an insurance claim, notify your insurance company or insurance professional promptly.
Your policy may contain specific requirements concerning the reporting of incidents and claims.
Even when you are unsure whether an incident will ultimately become a claim, discussing the situation with your insurance professional can help you understand the appropriate next steps.
6. Preserve Relevant Records
Do not discard or alter records that could be relevant to the incident.
Depending on the circumstances, this could include:
- Surveillance footage
- Photographs
- Employee schedules
- Maintenance records
- Inspection reports
- Customer communications
- Contracts
- Receipts or invoices
- Incident reports
Keeping relevant documentation organized can make it easier to provide accurate information if a claim develops.
7. Follow Up on the Incident
After the immediate situation has been addressed, consider whether the incident identified a problem that should be corrected.
For example, a business might discover that a particular area needs additional maintenance, an employee needs additional training, or a safety procedure should be updated.
The goal is not only to respond to the current incident, but also to reduce the possibility of a similar incident happening again.
Insurance Is Only One Part of Risk Management
Having liability insurance is an important part of protecting a business, but insurance does not replace good risk management.
Clear safety procedures, employee training, documentation, regular maintenance, and prompt reporting can all help a business respond more effectively when something goes wrong.
Business owners should also review their insurance periodically to make sure their coverage continues to reflect their operations.
Have Questions About Your Business Insurance?
If you are unsure how your business insurance would respond to a potential liability situation, reviewing your policy before an incident occurs is a good place to start.
Nieves Insurance Group works with Florida businesses to help them understand their insurance options and identify coverage that may be appropriate for their operations.
Insurance coverage is subject to the terms, conditions, exclusions, and limitations of the applicable policy. This article provides general information and is not a substitute for reviewing the actual insurance policy.
