Member Article

Health and safety risks can hit companies financially

A warning has been issued to North East firms that failing to safeguard workers’ safety can negatively impact on companies’ bottom line.

A poor safety record can cost a company dear, while a good one can lead to substantial savings and help improve staff morale and productivity, according to Jonathan Willett, a Director at Henderson Insurance Brokers’ Teesside office.

The annual average number of workplace not-fatal injuries between 2012 and 2015 was 656,000 in Great Britain and 25,000 in the North East.

Nationally it was estimated that more than 5 million working days were lost due lapses in safety. The number in the North East was 334,000.

Mr Willett warns that the cost implications of an accident or incident at work can include:

Disruption to service or production. Risk of prosecution by the Health and Safety Executive which could lead to a substantial fine. Increase in insurance premiums. Conditions being added to an insurance policy such as a firm having to call in and pay for a health and safety consultant or health and safety audit on a regular basis. An insurance company withdrawing cover all together if the situation is particularly serious or a business has racked up an increasing number of claims.

Mr Willett said: “Accidents can add extra financial burdens to companies with production downtime and an increase in overheads through paying to rectify any deficiencies. A poor safety record also can impact on customer satisfaction levels, lead to a loss of business and be detrimental to staff morale.

“It is good practice for businesses to spend time and money on making sure adequate measures, procedures, training and equipment are in place to ensure employees are working in the safest possible environment.”

Mr Willett also advises thatthose businesses with a focus on improving their workplace standards could see insurance premiums fall.

He added: “Firms that have established robust policies and procedures that have resulted in a good health and safety track record can lead to a substantial reduce annual insurance costs.”

A company’s size or a lack of in-house expertise is no excuse for not having adequate health and safety policies and procedures. As Mr Willett points out external business advisers can support companies that do not have staff with the knowledge to analyse and introduce health and safety and risk management solutions.

This was posted in Bdaily's Members' News section by Hendersons Insurance Brokers Teesside .