Testing and tagging is a common procedure many business owners tend to overlook. The problem is that passing this assessment is mandatory for every business in ensuring employees’ safety, as well as other establishments surrounding the company’s workplace. Once a company passed appliance testing, it can continue to operate without worries about authorities or general workplace safety.
What ordeal does a company has to go through by not complying with this regulation? Taking and passing the assessment can save an entrepreneur from the following problems and time consuming procedures.
Fire incidents. Fire is everyone’s nightmare, particularly business owners because their investments will be burned to ashes. They need to re-invest everything from scratch, which is time consuming on top of being financial burden. Unchecked appliances can be the cause of fire that many entrepreneurs dread to have in their facilities. This incident will be prevented as long as they are checked and not used in the future.
Astronomical fines. Fines or penalties always come once a company is proven in-compliance to different business regulations set by authorities. Penalties can range from $1000 up to $100,000 depending on the outcome of noncompliance severity. Aside from fines, damages or compensations must be granted to individuals affected by the incident like employees. Knowing which appliances to discard due to their dangerous state can keep businesses from time consuming damage settlements.
Incident investigations. Fire incidents in businesses require investigations since they have insurance coverage. They need financial coverage after the incident, but insurance providers won’t immediately grant them money until they knew what caused the fire. In addition to insurance, business bureaus would also want to know about every incident’s probable cause and see if fines are due. The investigation process can be time consuming with all the authorities that wish to check compliance issues.
Law suits. The legal ramifications caused by noncompliance with electrical test and tag are pretty elaborate. First, fire incidents can affect a lot of people like employees, giving those grounds for law suits charged to the company. Second, law suits may pile on the owner, but they can be extended to other employees like managers and executives if necessary. Law suits can discuss about settlement and even criminal charges depending on the problem’s severity.
Voiding insurance coverage. Companies obtain insurance coverage for their businesses as protection for potential accidents that strip off their finances and their property like fire incidents. They grant the money due to their clients in these cases as long as they are proven compliant to their policies and other authorities’ regulations. However, if investigations show that the company is clearly in-compliant with the rules, they will void any coverage signed up by their clients. Clients may counter their claims, but they will only find themselves spending time for appeal without success since insurance providers are clear with their policies.
Testing will simply keep a company from these time consuming procedures. If you have a business, avoid these procedures by complying with assessment process. Hire a test and tag expert today to check unsafe appliances or equipment in your office.
Learn more about the author: David Hall