HEALTH & SAFETYHEALTH & SAFETY

AN INSURANCE PERSPECTIVE

Euan Drysdale – Keegan & Pennykid

It is no coincidence that the best managed businesses or organisations have the fewest claims.

What are the two most important features of the Management in determining a well run risk?

ATTITUDECULTURE.

Why is the attitude so important?

Management attitude determines the seriousness with which Health & Safety issues are likely to be addressed.

Why is the Culture so important?

The Culture within the Organisation will determine how widely & how fully the implementation of Risk Control measures will be spread.

So what are the implications for Insurers?

The Business/Organisation with a poor attitude and culture is more likely to incur losses or claims.

They will need to charge considerably higher premium levels than might otherwise be necessary.

Incidents that arise from lapses in Health & Safety are most likely to lead to a potential Liability claim of one sort or another.

Why is this such an issue for Insurers?

The extent of the potential loss is usually much greater than for a property claim where the sum insured is their limit. Quantum is more difficult to predict, often being determined at court.

What will be the key factors in determining the outcome of any incident?

Risk Assessments – were they done? Were they adequate? Were they recorded?

Did the Risk Controls identified by the Risk Assessments operate?

Were the procedures that were followed appropriate to the situation and the risks identified ?

How do you prove it?

Why is it so important?

SUMMARYSUMMARY

Health and Safety is NOT just an issue for managers. Insurers are not impressed by reams of Risk Assessments & operational policies and procedures on their own.

To work properly, everybody at all levels in the Organisation must be seen to understand the need for and operate within the procedures set up.

CORPORATE HOMICIDECORPORATE HOMICIDE

With the passage of the recent legislation it is only a matter of time before we see a case brought before the court.

Most of the major Insurers have extended their policies to include the legal defence costs incurred in such an action.

If you don’t know for certain – check that your policy has been extended.

Will there be any knock-on effect on Liability Insurance premiums?

It is too early to say but if there are a number of successful cases brought leading to substantial claims then premium levels will have to rise generally to reflect this.

CONTACT DETAILSCONTACT DETAILS

Keegan & Pennykid (Insurance Brokers) Ltd

50, Queen Street, Edinburgh EH2 3NS.Telephone: 0131 225 6005Website: www.keegan-pennykid.com