18-02-2008
Insurance the first step to health & safety for contractors
By Mark Alexander
It’s an alarming, if not surprising fact that 77 of the 241 workplace deaths in the UK last year occurred in the construction industry. This is an unprecedented tally that makes for uncomfortable reading, however as disturbing as these figures are, they come at a time when a renewed effort is being made to improve on-site safety and promote better health at work. Insurance is a key part of any health and safety plan and taking it out should be top of the list for any reputable contractor.
“The disturbing thing is many of these deaths are by well-known causes that have affected the industry for years,” says John Lacey, chair of the Institution of Occupational Safety and Health (IOSH) Construction Group. “As an industry, we’re losing an estimated 1.8 million working days each year due to ill-health caused or made worse by work. [It’s vital to get] the message down to site workers that health and safety isn’t something you can ignore.”
Construction industry slow to enforce regulations
The revised Construction (Design and Management) Regulations (CDM) were designed to bring the issue to the forefront and galvanise the industry into action. Published by the Health and Safety Executive in April 2007, the report created a single set of rules for the construction industry that placed greater emphasis on competence and training while encouraging clients and principal contractors to make sure those they employ are suitably skilled.
The revisions also make reference to what is expected of “any person who, in the course or furtherance of a business, carries out or manages construction work”, otherwise known as contractors. It notes, for example, that contractors should “plan, manage and monitor construction work carried out by him or under his control in a way which ensures that, so far as is reasonably practicable, it is carried out without risks to health and safety.”
Insurance a key part of the health and safety edict
The effect is to cascade responsibility down through the supply chain by making all parties accountable to a greater or lesser degree. A number of imperatives are listed that should be considered before sub-contracting work. These include making sure sub-contractors are properly insured against all relevant risks. This caveat means whether you are a contractor or a sub-contractor, you should be able to demonstrate you have the adequate insurance cover.
There are of course specific insurance policies that have been devised to meet the very precise requirements of the construction industry. Tradesman insurance schemes, for example, have been created for handymen, plumbers and electricians who typically work under contract. In fact, there are specialist policies for most businesses looking to protect themselves, their staff and customers. All these covers tend to include public liability and employer’s liability cover; the later of which is required under law for those who employ staff. There are also additional bolt-on plans for specific requirements like tools cover or personal-accident cover.
Getting the right cover
While these policies certainly provide peace of mind, it is worthwhile making sure you get a plan that matches your exact needs or you could either find yourself paying over the odds or without enough cover. For instance, some insurers will quote you public liability cover of up to £5 million. While this seems a lot, there may be instances where more is required, so this amount should be considered against the actual risks and losses associated with your business activities.
It’s also important to check whether the policy includes any add-ons as this will effect how comparable it is to other options. Likewise, it’s worth checking the excess to be paid on each claim - if the payments seem reasonable but the excess isn’t, the policy may be inappropriate.
Selecting the right policy is an invaluable process and it pays to provide your insurer with as much information as possible. For instance, it’s good practice to provide a detailed description of all the activities you are likely to get involved in as failing to do so could invalidate the cover. You should also let your insurer know if any additional workers have been taken on during the course of the year will ensure the policy remains current and valid.
However, insurance should not be seen as a health and safety measure in itself, rather an essential back-up plan for when things go wrong. Health and safety regulations can no longer be seen as a burden that weighs down business through bureaucracy and administration. It is an important development tool that can be used to refine processes and ultimately save lives. Part of this changing attitude is ensuring you have adequate insurance cover that protects you and your business.
