Employer liability costs set to rise again for UK SMEs

Britainís small businesses could face crippling rises in employer liability insurance premiums due to new regulations, warns Bibby Financial Services - the largest specialist provider of business cash flow solutions.



Changes to the Health and Social Care Act, which came in to effect last month, now give the NHS the power to recoup treatment costs from firms that have been proved negligent in the case of employee accidents in the workplace.

Andrew Dixon of Bibby Financial Services, said: ìAs the UK moves towards a ëcompensation cultureí the necessity for businesses to have adequate liability cover in place is more important than ever. However, for many businesses the rise in insurance premiums is simply a cost they cannot absorb. Almost half (46%) of UK business owners and managers claim they cannot afford an increase in liability premiums, with over two thirds (67%) concerned that further hikes will force them to close their doors.*

ìThe good news for employers is that insurers are willing to work with the business community to minimise additional costs, by reflecting responsible health and safety practices in their rates. Businesses that wish to reduce their liability cover costs should heed the advice of the insurance industry and ensure they have cohesive health and safety policies in place.î

In order to help business owners and managers tackle the often complex area of health and safety in the workplace, Bibby Financial Services has developed the following tips:

Get registered - if you have at least one employee you must register with the appropriate body. If you have employees in an office or shop, you need to register with your local council. If you have a factory, you must register with the Health and Safety Executive. For more information log on to: www.hse.gov.uk

Assess the risk - whether you are an employer or work alone, you are
legally required to assess the risks in your workplace. Carrying out a risk assessment is the first step in minimising the cost of health and safety by ensuring that the correct preventative measures are in place.

Review and revise - review your risk assessment on an annual basis and always amend your assessment when circumstances change (e.g. when you buy a new piece of equipment). Remember to record the outcome of your risk assessment and any corrective action taken.

Put it in writing - if you employ more than five people, you must have a written health and safety policy and make sure that it is brought to the attention of all your employees. The policy should include: your general approach to safety, any people you appoint to look after health and safety matters and any specific health and safety procedures and emergency instructions you have in place

Training matters - ensure that you provide appropriate health and safety training for all employees. Include health and safety training as part of an employees induction and always monitor their behaviour to ensure that training is effective and that the procedures are being followed.

Look after your staff - as an employer, you have a legal obligation to provide enough clean, working toilets, drinking water, clean working areas, comfortable temperatures, adequate lighting, space, ventilation and an appropriate rest area

In case of an accident - you must have suitable first aid facilities and under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) you are required to report serious injuries, diseases and dangerous incidents. All businesses must have an accident book that records the date and details of each accident, including the name of the injured person and what action was taken.

If in any doubt, ask - your local authority, the Health and Safety Executive (HSE) or your local Chamber of Commerce or Business Link will be able to point you in the right direction for further information. Independent health and safety consultants can also provide useful advice.

While providing a safe and healthy working environment is a priority for many businesses, in reality, the majority find the day-to-day reality of risk assessments and compliance time consuming and a distraction from their core business activity.

Andrew Dixon added: ìIn an increasingly litigious society, itís in every businessí best interest to ensure they come up to scratch when it comes to health and safety matters. Not only can the personal consequences be devastating if a staff member or customer is injured, but business output can be lost, machinery damaged and insurance costs increased. With numerous low-cost outsourcing options now available, small business owners and managers no longer have to tackle complex health and safety issues alone.

ìThe solution for many owners and managers is to outsource their health and safety requirements, in the same way they outsource other non-core functions of the business.

ìFirms such as Bibby Financial Services specialise in undertaking health and safety assessments. A consultant will undertake a full health and safety survey of the business, including: the management systems in place, risk assessment, access to competent advice and monitoring systems. The visit will result in a detailed report that highlights the biggest risks and provides recommendations for improvements.î

For more information on health and safety compliance, call Bibby Financial Services on 0800 919 592.