Health and safety is important for all businesses and a big issue within the construction and tradesman sectors. From a business insurer's perspective, lapses in health and safety procedures cost business insurance companies and small businesses millions of pounds each year. Even with insurance, a large claim can push up the cost of a businesses cover, so it is important to make sure that as an employer you are vigilant about enforcing health and safety regulations.
Because of cost cutting during the recession, there have been concerns that smaller businesses will cut back on areas such as health and safety, putting their employees and members of the public at unnecessary risk. Construction firms, for example, have been very badly hit by the downturn and it is thought that some may have taken shortcuts in order to keep their costs down.
But it is not just the construction industry that has a responsibility for health and safety. All business owners must be aware of, and in compliance with, the legal regulations for their industry. Recession cost cutting will not be seen as a valid excuse by the Health and Safety Executive (HSE), which has stressed that it will clamp down as usual when it observes non-compliance. As such, you should ensure that you position health and safety at the heart of your business.
Responsibilities for all
All firms have general health and safety responsibilities and it is important to be aware of which ones apply to you. To begin with, if you are setting up a new venture, you should find out whether or not you need to notify the HSE. The rules on notification changed in April 2009, and most firms do not now have to inform the HSE of their work. However, if your business is a so-called ‘hazardous industry' such as construction, or if you work with hazardous materials, you may have to contact the executive to apply for a license.
You must also appoint a competent person to help ensure that you are in compliance with your health and safety responsibilities. There is no necessity for this individual to be a third party professional; indeed, you could appoint yourself. But you must nominate at least one person who will take charge of creating a comprehensive health and safety policy.
Health and safety policy and risk assessment
Every business must draw up a health and safety policy. This is the document that sets out your overarching strategy for managing health and safety. It will outline who has responsibility for what, and will cover all parts of the business.
Because your health and safety policy is unique to your business there is no standard-format policy. However, there are examples available on the HSE website, along with guidance on how to put the document together yourself.
You must also ensure that you carry out a regular risk assessment. During this process you will consider any hazards that exist in the workplace, and develop strategies to remove or mitigate the risk associated with these hazards. If you don't know where to start with a risk assessment, see professional advice.
Will your insurance cover you?
When health and safety fails and an accident happens, the financial consequences can be vast. The right business insurance policy will at least ensure that you don't have to find the money to cover compensation from your bottom line. Employers must take out Employers' Liability Insurance. This will cover you for compensation claims by employees who have been injured or become seriously ill while at work. Public liability insurance is also important to cover accidents and damage to members of the public and their property.
Many firms have found that the direction of their business has changed over the past year, in an effort to keep up with the rapidly changing economic landscape. If the nature of your work has changed, you must check to see that your insurance is still valid.
Industry specific regulations
It is likely that you will have to abide by various regulations specific to your industry. Inevitably, firms operating in sectors that are judged to be high-risk will have more stringent guidelines to which they must conform. The Health and Safety Executive website provides sector-specific information for new and existing firms that wish to understand their responsibilities.
This is a crucial year for many businesses and it is important to have all the bases covered to make sure your business remains successful and financially solvent. Health and safety should be a priority this year therefore, not just for financial reasons but also because you have an obligation to keep those who work for you and the general public safe from harm.
For more information on buying insurance for your business, visit www.SimplyBusiness.co.uk
