Which of the following embodies the idea of 'loss prevention' in liability insurance?

The concept of 'loss prevention' in liability insurance focuses on proactive measures taken to reduce the likelihood of losses or claims occurring in the first place. Training employees to avoid errors directly aligns with this principle, as it equips them with the knowledge and skills needed to prevent situations that could lead to liability claims. By ensuring that employees understand safe practices and operational procedures, a business can significantly mitigate risks associated with errors and accidents.

While raising premiums might have a deterring effect on risky behavior, it does not actively prevent the behavior from occurring. This strategy addresses the financial aspect of liability rather than the actual prevention of loss. Offering refunds for no claims does not contribute to preventing losses but rather serves as a financial incentive after the fact. Providing higher coverage limits offers greater financial protection but does not inherently reduce the chances of a loss happening. Therefore, training employees is the most direct form of loss prevention among the choices provided.