Risk Mitigation

What's the No. 1 insurance risk associated with operating a community bank? The biggest liability facing banks today is right under your toes: open, spacious lobbies with highly polished stone and tile floors, leaving bank patrons vulnerable to slips and falls. A 2010 analysis by OneBeacon Insurance found that slips, trips and falls were the top cause of both liability and worker's compensation claims for financial institutions in the United States.. Furthermore, with the younger generations turning to online banking in large numbers, the average age of customers banking on site is steadily growing older. Older customers face more mobility issues and, among the elderly, falls are the leading cause of injury and death — the likelihood of death from a fall increases six times for those over the age of 75. Community bankers should take steps to identify and manage this often overlooked risk.. According to the National Floor Safety Institute, half of all slips and falls are caused by the condition of the floor. Performing a careful and thorough inspection of all walking surfaces and pathways, both internally and externally, is the first step to managing these risks.. Banks usually recognize the potential for falls within the facility, but getting from the car to the building can present just as many hazards. Performing a check in both daylight and night time conditions can help identify these potential dangers. Use this opportunity to observe the small details of how people move through your property. . Pay close attention to sidewalks, stairs, ramps, parking lots and other areas that incur a high volume of traffic. More people using these paths mean more rapid deterioration. It's important to also be aware of any unwelcome use of your facilities. For example, if skateboarders use your property and damage the concrete, you will want to repair the broken pavement.. Be aware of changes in surface elevation. Features such as ramp edges, curbs or speed bumps can easily go unnoticed by someone who isn't giving his full attention to where he is walking. Certain changes in surface elevation can be marked with safety paint or smoothed down.. Also, storm runoff can create hazards for slips and falls. Wherever possible, use drains and gutters to divert water drainage away from walking routes. Certain drain openings can be covered in a slip-resistant coating and have spaces narrow enough to prevent high-heeled shoes and small feet from slipping through. You should also determine where storm water runoff may occur. This runoff can cause hazards from debris buildup.. Now consider ways to mitigate the risk of a fall inside your building. Reducing the potential for falls inside your facility means more than providing floor mats and marking wet spots with a caution sign.. Monitor floor mats diligently during inclement weather. Floor mats will become ineffective as they quickly fill with water, snow and dirt during periods of inclement weather. By keeping spare mats on hand, employees can monitor the entrances and replace soiled and soaked mats when necessary. Consider making an individual accountable for monitoring the mats to ensure the mats are replaced as needed. Mats also can create a hazard if they aren't properly secured to the floor. Use mats with a rubberized back or with a base that can be adhered to the floor to hold them safely in position.. Evaluate the manner in which floors are cleaned and dressed. Attractive floors and traction are not mutually exclusive. However, it's important to realize that not all cleaning products are compatible with every floor. For example, cleaning products used on hardwood floors generally shouldn't be used on stone or tile walking surfaces. It's also good practice to evaluate how and when floors are cleaned: Does water pool in a heavily-used walkway when mopping? Do certain cleaning products or waxes create dangerously slippery surfaces? It's smart to test floors to see how they react to a new cleaning product before using it across an entire surface.. And don't forget to examine the condition of your carpets. Carpets deteriorate faster than hard floor surfaces. Pay attention to wear and tear, and replace carpets and rugs once they become frayed, saggy or torn.. The best way to maintain a safe walking environment is to make someone accountable for monitoring all surfaces. Create ownership of the issue by designating someone to be responsible for floors and walkways. By doing so, it is less likely that an issue will be overlooked. You can also implement an employee training program. Reinforce the idea that maintaining a safe walking environment is a shared responsibility.. Remember, you can't control every potential hazard but you can certainly reduce the risk. By creating and maintaining safe walkways for customers and employees, community banks can minimize the chance of costly and potentially dangerous falls..Craig Collings is president of Financial Services at OneBeacon Professional Insurance, MInnetonka, Minn. Reach him at collins@onebeacon.com