Three tips for minimizing errors and omissions in your growing business
As your business grows, whether that means more employees, more clients, more revenue, or all of the above, there will inevitably be more “cooks in the kitchen.” And this can mean a greater risk for errors. These errors may include typos, unmarked checkboxes, overlooked emails, missed deadlines, or any number of mistakes that cost your business and your customer time and money.
Everyone makes mistakes now and then, and they don’t often cause any real problems. For those rare times when they do, most businesses cover themselves by carrying errors and omissions (E&O) insurance. While having an E&O insurance policy is important, it’s vital to take preventive measures so you don’t have to use it.
Errors and omissions can be costly to your business both in terms of reputation and money. As a business owner, you want to grow your business but you might be afraid of the additional risk that comes with doing so. If you find yourself struggling to balance growing operations and minimizing the risk of errors and omissions, don’t throw in the towel just yet. Here are three tips to keep your business moving forward without increased risk tagging along.
Use technology to automate and reduce errors and omissions
As we mentioned before, making mistakes is human nature. So, what if the work isn’t being performed by humans? Technology can remove human hands from the routine processes your business deals with daily. With automation, the opportunities for human error become dramatically lower. Lucky for you, technology makes it easier than ever to automate manual, error-prone business processes.
Tasks like data entry and documentation can be automated to save employees from spending their valuable hours on repetitive work. Removing employees from these processes reduces the chance for errors and creates a better experience. Your employees can then spend more time doing what you hired them to do — conducting business and building strong client relationships.
Standardize processes to reduce errors and omissions
For the tasks you can’t automate, the next best thing is to standardize. It’s easy for mistakes to slip through the cracks when everyone is doing things their own way. Creating standard operating procedures can help ensure employees are taking the right steps at the right times, thus reducing the chances of mistakes. This is especially important concerning safety at your company. Having standardized safety training, manuals, operating procedures, and processes helps reduce both the risk of human error and injury. In this way, standardizing can pull double-duty by helping reduce both your E&O exposure and your workers’ compensation insurance claims.
It’s a good idea to build checks into your standardized processes to ensure things are done correctly. In many cases, simply having an internal review process can catch would-be E&O issues before they have the chance to do harm.
In the event that an error or omission isn’t caught in time, having a standardized process helps you gather more details like who made the mistake, how it happened, and how it could have been avoided. You can use this information to prevent future mistakes by designing onboarding and ongoing training practices to address areas with a high tendency for error.
Emphasize continuing education to reduce errors and omissions
As your business expands make sure you’re encouraging both long-time employees and new hires to grow alongside it. Continuing education requirements are only mandatory for employees in certain fields but they can benefit workers in every industry and role. A staff with updated knowledge of current best practices for their job will deliver better results and are less likely to make errors at work.
As a small business owner, you have the power to ensure your staff remains up-to-date on your industry’s best practices. You can also empower your employees by helping them obtain professional certifications so they can continue doing their best work. Encouraging your employees to sharpen their skills can benefit your business in ways far beyond reducing the risk of errors.
You don’t have to choose between growing your business and reducing E&O exposure
Too often, business owners feel like they have to make a choice between growing their business and reducing risks. The truth is, just because you’re growing and expanding doesn’t mean your risk has to grow as well. While these tips can help you maintain an environment free from egregious mistakes, the right insurance coverage can protect your business from the financial impacts of errors and omissions.
Thanks for reading! Please note that this content is intended for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.