New guidance clarifies insurance position on safety

Health and safety has long been classified as a ‘burden on business in the popular press and amongst many business owners.  However, a little probing by the government has revealed that the crux of the issue isn’t the health and safety people themselves (good news for us!) but rests largely with the application of insurance and how claims are covered.

Issues emerged during government led reviews which showed health and safety being used as an excuse for lack of service, events being cancelled and for business not offering young people much needs work experience.  A contributing factor to this was that some insurance companies were asking for more than was necessary.

In response the ABI (Association of British Insurers) has issued some clear and very welcome guidance on what business can expect from their members and what they in turn expect from the insured, a copy of which can be down loaded here; Health and safety for small/medium sized businesses

Note:  ABI members make up 90% of insurance policies in the UK but its good practice to make sure your insurer is an ABI member by visiting; https://www.abi.org.uk/

Your insurer;

1. expects you to take reasonable steps to comply with health and safety law;
2. will not refuse to pay a claim purely because of a breach of health and safety regulations;
3. will not withdraw cover mid-term simply because of a breach of health and safety regulations; and;
4. only expects you to hire a health and safety consultant if you lack in-house expertise and need the help due to the complexity or nature of the business.

You, as the insured;

1. Don’t have to have annual PAT inspections unless it’s in conformance with HSE guidance;
2. Should have good record keeping if you want to be able to defend a claim;
3. Should check the guidance defining what is an employee (usually work experience students, apprentices, operators hired or borrowed from another employer, labour-only sub-contractors and home workers);
4. Should complete inductions, training courses, workplace inspections and risk assessments;
5. Should have access to a competent consultant on health and safety if your business doesn’t have the necessary expertise in house.

In summary, this is nothing but common sense and hopefully the start of something good.  Working together with industry we’d hope to see a tightening of defences against claims, a reduction in premium for well managed business (think OHSAS 18000) and the return of apprentices and younger work placement staff to job sites.

If you need help or advice on health and safety please contact us or request a call back – or call and speak to a friendly expert on 01453 800100.