Loss Control Toolkit

Loss Control Toolkit2019-02-13T11:52:09+00:00

Your Loss Prevention Program

Your goal is a “safe working” environment for your employees and non-employees.

  • Help you perform an evaluation of your present loss control efforts
  • Help you identify where changes are needed
  • Help you establish or refine your program

What Is Loss Control?

Loss control is the control of expenses that will affect your ability to compete in today’s market. It is the proper application of business techniques and skills to control losses to employees, products or equipment

When Is a Loss Control Program Needed?

Effective loss control needs an ongoing program that:

  • Identifies goals
  • Determines where the responsibility lies
  • Follow-ups continually to ensure Company objectives are met

As a business owner you must stay personally involved to keep others focused and to oversee the activities you can delegate to your staff, such as inspections, accident investigation and training of employees.

Management of Loss Control

You, as a member of management, must be committed to the loss control concept. By signing a Safety Policy, you acknowledge your support for a program that requires the active involvement of all employees.

Steps to Success

  1. Prepare and distribute a loss control policy statement
  2. Set objectives and formulate programs/procedures to accomplish the objective
  3. Define the responsibility of management personnel and assign responsibilities
  4. Establish appropriate controls to ensure compliance with the program procedures


The success of your loss control program depends on how well each person is aware of the objectives and how the objectives are to be met. Proper communication is the key. Lines of communication must be established. And, communication must be timely.

Communication Involves

Input to develop the criteria and goals for your program. Feedback to determine the program’s effectiveness if communication is seen as welcome and rewarding, more employees will voice their concerns so you can effectively act upon them.

Steps to Success

  1. Publicize your objectives – Publish and personally present the objectives and details of your program.
  2. Include everyone in your communication network – Everyone must understand their part in the communications network and how important it is to effectively communicate their concerns.
  3. Train and retrain – The success of your program depends on the employees’ continuous awareness of the value of loss reduction and how it relates to each employee. Your training program must reinforce the employees’ responsibility for voicing their concerns. Make your supervisors aware of the need for planned follow-ups. The success of your program depends on ongoing training on the value of loss reduction and how it relates to each employee. Each employee must be aware they are responsible for voicing their concerns.
  4. Judge the effectiveness of your communication – You must supply the appropriate forms and recordkeeping procedures to support and document communications. You need to have regular meetings to discuss loss control activities and respond to employee concerns.
  5. Use the information – Again, you need to use the information you gain through the communications network. This is your chance to acknowledge improvement in status report and reward performance.

Employee Selection

  1. Physical demands of the job – Each employee needs to be selected according to the particular job’s requirements. What are the physical requirements of the job? Ask the supervisor and the employees doing the job. They’ll tell you how physically demanding it is. A medical screening of new employees may be necessary. The extent will depend upon the job’s physical demands. You can work with your company doctor to develop a specific physical for each job title. The doctor can also determine the need for periodic re-examinations.
  2. Rules and regulations – Each applicant must be assessed upon whether they are willing to accept Company rules and regulations. Written rules will help new employees understand what is expected of them and how following these procedures will help protect them from possible injury.

Employee Selection

  1. Make sure the job description accurately defines the job requirements
  2. If a medical screening is performed, make sure it reflects the actual job exposure
  3. Make the doctor aware of the job exposures
  4. Maintain complete personnel files on each employee
  5. Familiarize the applications with the job requirements

Training Is Needed By

  • Supervisors to effectively fulfill their responsibilities
  • Employees to have the knowledge and skills to do their jobs safely and efficiently


New and transferred employees need to learn your loss control goals and practices right along with employee benefits and company operations. They should learn from day one that your company is committed to safety and that they will play an important part in keeping the workplace safe.

Job Training

You are well aware how specialized training prepares employees to do their jobs effectively. That training is incomplete unless it includes loss control measures. Think how an inadequately trained employee might impact your operations.

  • Injure the employee or others
  • Adversely affect product quality
  • Damage equipment
  • Result in fines from regulatory bodies
  • Damage the reputation of your business

Successful Job Training Includes:

  • Identifying and communicating job hazards
  • Teaching the employee the proper way to do the job
  • Monitoring the employee’s performance of the job

Job Safety Analysis (JSA)

One technique for successful job training is the use of a JSA. This form provides the steps necessary for the employee to safely perform their job. The supervisor may choose to have the employee assist in identifying the job steps, potential hazards and key safety factors. Make sure these results are carefully reviewed because they control the potential for loss and provide continuity for future training.

Management and Supervisor Training

Managers and supervisors must be trained for their specific responsibility and held accountable for their activities and results. Accountability for meeting loss control goals must be consistent with the company’s goals.

Performance Evaluation

Your employees’ appraisals should reflect their efforts and contributions to controlling losses along with their job performance.

Steps to Success

  1. Develop and implement indoctrination procedures for new and transferred employees
  2. Develop and implement job training procedures
  3. Develop and implement training procedures for management personnel
  4. Develop and implement measurement criteria for the effective support of the loss control program
  5. Establish management controls to ensure the effectiveness of the procedures implemented

Inspections Why?

Documented self-inspections protect you in at least two ways:

  • By detecting unsafe physical conditions
  • By detecting unsafe work habits/behavior

All too frequently, the inspection process has focused entirely upon the physical environment. Yet, the majority of costly injuries and lost time results from employee actions.


The inspections should be done by the person deemed qualified by virtue of their training and familiarity with the work environment. Usually, the supervisor in charge of the area will perform the inspections.


A form must be developed for each department. The person performing the inspection needs to identify and show what unsafe acts/conditions must be corrected. After the correction is made, follow up is needed to see if that action accomplishes its purposes.

What Type?

Inspections may be labeled “Formal” or “Informal”.

Formal Inspection – The inspection must be able to provide thorough documented evidence to management or to meet any regulatory requirements.

Informal Inspection – The inspection is an ongoing process performed by a supervisor or identify unsafe acts/or conditions. Informal inspections are usually not documented.

Inspections – Frequent inspections are vital to make your program effective. Every level of management needs to be continually involved in inspecting their areas of responsibility. They need to review inspection and provide feedback as to the thoroughness and usefulness of the report.

The benefits you will receive from an inspection program are:

  • Fewer interruptions of production – which affects profits
  • Reduced unexpected expenses through reduction in losses or claims
  • Opportunities to correct unsafe conditions or activities before a loss

Steps to Success

  1. Determine what resources need to be inspected
  2. Develop your inspection forms
  3. Determine who will be responsible and accountable for the inspections
  4. Determine the frequency of the inspections
  5. Decide how the information from the inspection will be utilized
  6. Determine the type of follow-up that will be used by management to ensure that corrections are being made
  7. Determine if the inspections effective in controlling unsafe acts/conditions