When Ignoring Safety Warnings Becomes Criminal: Lessons for Business Owners
by McShea Insurance
A Tragedy That Could Have Been Prevented
The Titan submersible disaster in June 2023 shocked the world. Five lives were lost when the vessel suffered a catastrophic implosion deep in the North Atlantic. Then, the U.S. Coast Guard recently released a report confirming what many feared: this tragedy could have been avoided.
The Coast Guard’s findings were clear:
“The Titan submersible disaster could have been prevented… holding OceanGate CEO Stockton Rush responsible for ignoring safety warnings, design flaws, and crucial oversight. Had he survived, this oversight may have resulted in criminal charges.”
Although this was an extreme example, the lesson applies far beyond deep-sea expeditions. Safety warnings, ignored protocols, or rushed jobs can have devastating consequences in any industry—from construction to landscaping to restaurants and fitness centers.
Why This Matters for Local Businesses
Next, let’s bring this lesson closer to home. Safety oversight isn’t just about big corporations. Every local business faces risk when shortcuts are taken. OSHA violations, missed inspections, or improperly trained employees can trigger lawsuits, shutdowns, or even criminal liability.
As the Coast Guard report further explained:
“The Coast Guard determined that safety procedures at OceanGate… were ‘critically flawed’ and found ‘glaring disparities’ between safety protocols and actual practices.”
This disconnect between what’s written down and what’s actually enforced is where many small businesses unknowingly expose themselves.
Real-World Examples of Risk
- Construction companies may overlook scaffold inspections. The result? Worker injuries, OSHA fines, and liability lawsuits.
→ Coverage that responds: Workers’ Compensation (for injured employees), General Liability (for third-party injury), and Employers’ Liability. - Landscaping companies may allow untrained staff to apply chemicals. The outcome? Sick clients, pollution claims, and costly litigation.
→ Coverage that responds: Pollution Liability, Workers’ Comp (if staff get sick), and General Liability. - Restaurants may ignore fire safety inspections or fail to train staff on handling hot oil and equipment. The risk? Kitchen fires, injuries, property damage, and costly lawsuits.
→ Coverage that responds: Commercial Property (for fire damage), General Liability (for third-party injuries), and Business Interruption (lost income if forced to close). - Fitness centers may neglect equipment maintenance or skip proper staff training. The result? Serious member injuries, medical claims, and potential negligence lawsuits.
→ Coverage that responds: General Liability (for member injuries), Professional Liability (if trainers are at fault), and Equipment Breakdown coverage.
Though these examples may feel far removed from your day-to-day, the truth is simple: failing to follow safety protocols puts your business, reputation, and future at risk.
Insurance as Your Safety Net
Then comes the question: what happens if something seriously goes wrong? Commercial insurance acts as your safety net when accidents happen. However, not all policies are designed equally. Coverage gaps can leave you financially—and legally—exposed.
Lastly, the wrong oversight could cost you more than just fines. It could mean the loss of your business, your reputation, or worse. That’s why working with an experienced insurance advisor is critical.
Protect Your Business Today
At McShea Insurance, we help business owners identify hidden risks and ensure coverage is tailored to protect what matters most. Since 1986, we’ve been dedicated to keeping businesses in safe harbor with the right blend of protection and savings.
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