Workplace survival

Now more than ever health and safety has become an issue that affects every aspect of our lives, from the home to the workplace. The days when we would brush the matter off as just another niggle of everyday life and dismiss health and safety legislation as being yet another example of the nanny state in action are long since gone.

No, it is not simply a case of coming to terms with health and safety legislation. Insurance brokers, in particular should actively embrace it.

The opportunities of addressing these matters and taking a proactive stance to risk management provides opportunities for us all – insurers, brokers, risk managers and even claims handlers seeking to mitigate losses.

Recently, we heard that victims of the aggressive MRSA bug were seeking redress from the NHS via statutory health and safety at work legislation. This is just another example of the expansion of this 'industry'.

According to analysts, UK businesses will spend just over half a billion pounds this year on health and safety compliance services. This sounds like an enormous amount of money until you consider that it roughly equates to £12 per annum for each of the 4.3 million businesses registered, or less than 5% of the cost of replacing the Trident nuclear deterrent.

However, brokers should consider these statistics for the year to 31 March 2006, produced by the Health and Safety Commission.

They show that as many as 30 million working days were lost – 80% were work-related ill health with the remaining 20% relating to workplace injury.

As many as two million people are suffering from an illness which they believe to be work-related, and 75% of those conditions relate to upper limb or back problems, stress, depression or anxiety.

Reducing in number
The statistics don't make pretty reading although it is fair to say that many of the indicators are reducing in number.

But we should remember that, with over 90% of UK business being designated as small – that is, under 50 employees – many are likely to slip below the radar of enforcement by the authorities such as the Health & Safety Executive or environmental health officers, or insurers via loss control surveys. This is because there is neither unlimited resources nor commercial pressure to cover all of the ground.

Some businesses continue to treat health and safety with contempt to the detriment of their employees, customers, stakeholders and anyone else who comes into contact with their employees, contractors – and even sub-contractors.

Thankfully, however, there are many other well-intentioned organisations that struggle to meet the demands of ever increasing and complex regulation, allocating appropriate time and resources to this important area, as well as running their business.

The vast majority of company directors that I have come into contact with are unsophisticated health and safety buyers.

But they are, by and large, law abiding and keen to obtain the best insurance at the keenest price. As a distress purchase, some have been charged exorbitant fees to comply with legislation by unscrupulous consultants and have not received the value of service expected.

The insurance market, and regional brokers in particular, are well placed to offer solutions to their customers across a range of health and safety areas including effective management systems, training (to improve awareness and competence) and consultancy.

Traditionally, these services have been regarded as the domain of the national broker or the more visionary insurer, but we are seeing a greater appetite from the more local or smaller regional brokers, many of which have long standing relationships with their customers.

These relationships stretch back many years and the broker has become a core adviser to the company, along with the accountant and solicitor. It can offer that little bit extra to the customer, who is anxious to read and learn about the ever mounting "red tape" and statutory obligations for health and safety.

The spectre of corporate manslaughter looms threateningly and, knowing that ignorance of the law is no excuse, the customer welcomes a broker's input.

From a customer's perspective, these solutions will assist in preventing and reducing accidents in the workplace (the original reason for the Health and Safety at Work Act and subsequent regulations), ensure legislative and contract compliance and help create a safer working environment, all of which have a positive effect on running a more efficient business. IT

Steve Johnson is with health and safety and risk management consultancy Business Safety Systems