In the complex manufacturing industry, there are common risks that require comprehensive insurance coverage. Investing in commercial insurance is a crucial step in ensuring the longevity of your business operations, but there are also proactive steps you can take to prevent loss. For example, a strong loss prevention program within your manufacturing facility can benefit your employees and the company.
This article explores expert recommendations from Cory Eickholt, Director of Loss Control at Central Insurance, on protecting your property, assets, and employees.
How to Protect Your Property
Eickholt identifies potential fires and roof damage as the two most common—and dangerous—threats to a manufacturing facility. Here, we outline some fire safety tips and provide steps to protect your commercial building’s roof from damage.
Fire Safety
Fires are one of the greatest hazards a manufacturing facility can face. Below, we break down some fire safety information that manufacturers need to know.
Common Causes of Fires in Manufacturing Facilities
Equipment and building electrical issues are some of the most common fire hazards in manufacturing facilities. Electrical distribution and lighting equipment were the leading cause of structure fires in industrial properties, while heating was the primary cause of fires in manufacturing facilities.
To prevent fires from these systems, ensure your electrical systems are regularly assessed and maintained, including inspections with infrared thermal imaging cameras to identify hot spots.
The Importance of Maintaining & Assessing Fire Protection Systems
Sprinkler systems should be properly designed to handle the structure and occupancy they are protecting. When it comes to manufacturing facilities, sometimes building sprinklers aren’t enough to protect special hazards within the building. Specially designed fire suppression systems can provide specialized protection for things like paint or powder coating operations that can be highly flammable.
“A lot of times, especially in painting operations, exposure to flash fires are increased and a critical hazard that needs to be properly controlled,” Eickholt says. Flash fires occur when flammable materials ignite. These fires spread rapidly and can damage a large area in a short amount of time. Ensure your fire protection systems are equipped to extinguish this type of fire quickly.
Other Ways to Limit the Spread of Fire
Alongside the maintenance of your sprinkler and fire suppression systems, there are additional steps you can take to limit the risk of fire on your property. According to Eickholt, these include:
- Make sure flammable liquids are stored in proper cabinets or rooms (designed to NFPA standards)
- Provide proper ventilation in these storage areas
- Centrally monitored fire and smoke alarms located throughout your facility
- Dispose of soiled rags or other waste products that could increase fire load
- Properly serviced and functional fire extinguishers located throughout the building
- Combustable materials such as cardboard or pallets are stored away from sources of ignition
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Roof Safety
Protecting your roof requires proactive attention to the structure.
Be sure to clear gutters and inspect the roof regularly for potential leaks to help ensure the structural integrity of the building.
“Proactive roof maintenance is essential because we want to make sure everything inside the facility is properly protected,” Eickholt says. “Manufacturing facilities can have a significant exposure when it comes to potential wind, hail, and storm damage to their roof, so it’s vital their roofing system is in top shape to withstand those elements.”
He continues to explain that the age of the roof can be an indicator of how much useful life is left before repair or replacement is needed, but other factors can indicate a repair is needed sooner. Look for visible damage, sagging, tears in the roof membrane, cracking, excessive roof granular loss, or rot.
Did You Know: The average life expectancy of a roof is 15 to 25 years.
Roof maintenance is not merely about protecting the physical structure but also safeguarding everything within. A well-maintained roof protects against potential damage to machinery, raw materials, products, and the people inside.
How to Protect Your Assets
Proper maintenance of your fleet vehicles and manufacturing equipment is pivotal to risk mitigation and loss control. Prioritizing proper maintenance ensures equipment longevity and protects against unforeseen breakdowns that can impact business revenue by stalling the production process.
Here, Eickholt outlines some of the best ways to protect the most at-risk assets in a manufacturing facility.
Protecting Your Equipment
Equipment maintenance involves staying current on maintenance schedules and practices to prevent equipment breakdown. Be sure to set a schedule for regular assessment of machine functionality and keep accurate documentation of evaluations and maintenance procedures for your records.
“Adhering to the equipment manufacturer’s preventative maintenance recommendations go a long way in preventing costly equipment breakdown and subsequent business income loss claims,” Eickholt says.
Fleet Safety
From reducing Workers’ Compensation claims and vehicle maintenance to exonerating operators and lowering your insurance premiums, integrating fleet safety controls is a crucial step for manufacturers with fleets.
Here, we break down some of the most basic fleet safety procedures that will protect your vehicles, your products, and your drivers:
- Integrate Basic Driver Safety Training: Ensure drivers are equipped with fundamental safety practices, emphasizing defensive driving techniques.
- Leverage Video Safety: Use dash cams and other telematics to capture real-time footage, aiding in dispute resolution and liability assessment. Dash cam technologies can monitor speed, seat belt usage, and overall vehicle handling to ensure drivers are up to standard.
- Provide Distracted Driver Courses: Offer specialized courses addressing the perils of distracted driving, promoting heightened awareness among employees.
Did You Know: Drivers spend an average of 1:38 minutes on their phones per hour.
- Identify Indicators of a Good Driver: Look for attributes such as a clean driving record, adherence to safety protocols, up-to-date documentation, and a commitment to ongoing training.
- Regular Vehicle Maintenance: Conduct regular inspections, including tire checks, brake system evaluations, and routine servicing to prevent breakdowns and keep your drivers safe.
Technology is a valuable ally when enhancing your business’s risk management. Utilizing tools like Central’s Loss Control Services platform provides businesses with a toolkit of free resources such as safety videos, blogs, and bulletins.
How to Protect Your Employees
Protecting your physical structures and equipment is important, but a desire to protect employees should be at the heart of all loss control for manufacturing companies.
This aspect of loss control is so crucial that insurers considering writing Workers’ Compensation coverage with a manufacturer will often evaluate their workers’ safety practices, ensuring the company is taking the necessary steps to protect their people.
According to Eickholt, two of the most common aspects of worker safety a loss control representative might evaluate include:
- Comprehensive training programs, which provide in-depth onboarding and safety training designed to reduce early accidents among new hires.
- Proper personal protective equipment (PPE), including protective wearables like eyewear or foot protection, and optimized workstation ergonomics. Using PPEs is not only compliant with safety regulations, but it also fosters an environment where employee well-being is prioritized at every level.
In addition, having the proper guards in place on equipment to protect employees from pinch points, lacerations, or any moving parts of a machine that can cause significant injuries is vitally important. These guards may include physical guards, or even light curtains, that can automatically shut down a machine if an employee gets too close to an area on a piece of equipment that can cause harm.
Employee Training
Training on equipment usage and safety is non-negotiable. Beyond enhancing operational efficiency, it’sa proactive measure to minimize potential risks and accidents on the job.
Documentation of employee training history becomes an equally crucial asset, as these records outline your commitment to safety and serve as a valuable reference should OSHA need to inspect your safety program and facility.
For Example: If you have an employee operating a loader on a site, you should ask yourself: Have they gone through the proper training? How long were they trained? Were they trained with someone who’s experienced? Has this training been thoroughly documented? If not, these pose red flags on the proper training of employees and increase the risk of worker accidents associated with equipment usage.
Learn More About Loss Control with Central
Follow these expert tips from Central to protect your employees, facility, and products. For more advice on how to protect and insure your business, explore our other helpful blogs.
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