Insurance costs continue to spiral for UK SMEs

With employer liability insurance costs set to rise again when the delayed Injury Cost Recovery (ICR) legislation comes in to force on 1 October 2006, Bibby Financial Services, specialist provider of business cash flow solutions, is urging the UKís small business community to review health and safety policies as a matter of urgency.

Under the new legislation, the NHS will have the right to claim back from employers the cost of treating staff injured on their premises through their employer liability insurance. This change in the law is expected to increase the cost of employer liability insurance by up to 8% for small to medium-sized businesses.

With many struggling to stay in business and remain profitable through the early years, the burden this imposes on owners and managers is viewed by many as another kick in the shins from the Government when it comes to supporting the prosperity of the small business community.

David Robertson, chief executive of Bibby Financial Services, said: ìDespite the seemingly bleak outlook, there are positive steps UK owners and managers can take to minimise the rise in their employer liability insurance when the new regulations come in to affect.

ìInsurers have made it clear that they are willing to work with the business community to keep costs as low as possible, by reflecting responsible health and safety practices in their rates. Owners and managers who wish to minimise the impact of the regulations on their business should review their health and safety procedures as a matter of priority and work with their insurers towards a manageable solution.î

In order to help 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 your company 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 communicated to all employees. The policy should include: your general approach to safety, details of individuals responsible for health and safety matters and any specific health and safety procedures or 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 the induction process 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.

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

ìFortunately, owners and managers can get help from outside organisations, such as Bibby Financial Services, regarding their health and safety requirements in the same way they outsource other non-core functions of the business,î Robertson concluded.

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