By: Philipp Kaeferle, General Counsel

Risk is something every business leader must consider, manage and ideally mitigate in order to keep their enterprise and their patrons safe. It is also a topic on the minds of facilities managers, contractors and service providers, as these professionals must not only ensure the safety of a facility’s occupants, but they must also remain compliant with all applicable laws, insurance regulations and industry-wide best practices. In short, reducing risk in the facilities space is a complex, multi-pronged effort involving several key stakeholders.

Beyond the physical hazards inherent in any given workplace, organizations are under increasing scrutiny when it comes to managing financial, contractual and reputational risks. In most cases, non-compliance is simply not an option.

Many large corporations employ in-house counsel to oversee the legal end of things, but with so many moving parts involved in managing a multi-site facility, it can be beneficial to take a step back and assess whether or not you’re reducing risk in the right places.

Understanding the Importance of Insurance

Perhaps you’ve been there before: An emergency takes place at one of your stores and you need a technician on the scene ASAP. In these scenarios, it can be tempting to call upon whichever service provider is readily available and close to your location. The downside to selecting a provider based solely on proximity is that, in a rush to remedy the situation, you run the risk of hiring an uninsured technician. And without the proper coverage, this service provider could quickly become a liability.

An experienced facilities management (FM) solutions provider with access to a national network of independent service providers (ISPs) can alleviate any fears you may have about your technicians’ credentials. Using an advanced tracking system, your FM partner will be able to ensure ISP insurance coverage and compliance, giving you peace of mind that the job will be performed according to industry standards.

Your FM solutions provider will also track things like an ISP’s auto insurance and workers’ compensation coverage. Without these provisions, a technician who gets hurt on the job or damages property could wind up costing your organization considerable time and money. A mishap of this nature could also put your reputation on the line if employees or customers are harmed in the process.

Reducing Cyber Risk

In today’s digital age, companies large and small are vulnerable to cybersecurity threats. This is true of any organization, but entities such as retailers, banks, schools and healthcare organizations, which have vital customer or patient information to protect, should take extra precautions when securing their online operations. Many FM solutions providers will protect clients on an elevated level by purchasing cyber liability coverage and instituting robust company-wide cyber policies.

While it’s difficult to prepare for the unknown, you can prevent risky scenarios with the aid of a trusted FM solutions provider. With a trusted partner by your side, you can protect your assets, customers and employees without losing sight of your core business priorities.

Interested in learning more about how an Integrated Facilities Management program can bring true cost savings to your organization and help mitigate your risk? Click here

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