ppma chairman's lunch 5 june 2014

Health & Safety:“…How to be responsible, box clever and make your business better and safer…”

by Martin Coppard ACII CBCI Tech IOSH,Risk Manager

05.06.2014

Introduction to Martin Coppard

› 20yrs+ experience in commercial insurance underwriting and broking › Now undertaking role of Risk Manager › Chartered Insurance Broker (ACII) › Technical Member of Institute of Occupational Safety & Health (IOSH) › Certified by the Business Continuity Institute (CBCI)

Introduction to Sutton Winson

› Established 1955› Independent Insurance Broker (Commercial and Personal Lines)› c. 110 staff› Three Offices: Twickenham (Middlesex), Burgess Hill (West Sussex) & Petersfield (Hampshire)› Working with the PPMA for 7yrs+› Risk Management Team provide H&S, HR, Business Continuity, Fleet, Supply Chain and other risk management support

So, what do we think about Health & Safety?

› Realms and realms of paperwork› Needless beaurocracy› Over-the-top› Impractical› Over-burdening/Stops us working› Source of revenue for HSE/local authorities/consultants› “Man with a Clipboard”› Waste of time› “It’s all commonsense”

Why bother about it?

› MORAL- Human nature- Moral code of society- Concept of an employer owing a duty of reasonable care to his employees (and others)- A person does not expect to risk life and limb, or physical health, as a condition of employment - Desire for content and healthy workforce- Being seen to “Do the right thing”


› MORAL Here’s a thought…..

National statistics demonstrate that proportionately those who work for small businesses are at significantly greater risk than those who work for large organisations. Morally wrong?


› LEGAL- In an ideal world organisations would self-regulate or self-police (but unfortunately not all are sufficiently motivated or enlightened!)- The moral “duty of reasonable care” has been developed over the years through common law judgments- Reinforced within The Health and Safety at Work, etc. Act 1974 (HSWA) and regulations made under it


› LEGAL There are strong legal reasons for employers to manage risk:- Preventive: enforcement notices (improvement or prohibition) can be issued by enforcement inspectors- Punitive: where the criminal courts impose fines and imprisonment for breaches of legal duties - Compensatory: where employees are able to sue in the civil courts for compensation


› ECONOMIC- Accidents and ill-health are costly!- For every £1 spent on insurance, the uninsured costs of accidents over a year amount to between 8 & 36 times that amount [Source: HSE study - “Cost of Accidents at Work”]


› ECONOMIC- Direct and Indirect Costs- Direct Costs are calculable (eg. sick pay, repairs to damaged equipment, fines and legal fees, civil compensation, etc.)- Indirect Costs are consequential (lost orders, loss of opportunity, loss of key staff, re-training, damage to brand and reputation, etc.)- Indirect Costs, though largely difficult to calculate, are often substantially more than direct costs.


› ECONOMIC- Burden on the NHS (funded by the taxpayer) which deals with both the the immediate and long-term consequences of accidents and ill-health- Reduced tax revenues where individuals working capacity is impaired - Need to claim state-funded benefits

It gets personal!

› Directors and Senior Managers are at risk, as well as the Company

It gets personal!

› CASE STUDY 1 – IC ROOFING Amanda Huff, HSE Inspector: “…The tragedy of Darren Hoofe’s death is that it could so easily have been avoided.

Colin Cooper showed reckless disregard for the safety of his employees even though

the risk and necessary precautions were well known to him…”

Detective Inspector Colin Dowle, Sussex Police:“…This is a particularly tragic event which was entirely preventable. Colin Cooper

ignored the obvious risks in favour of economic gain, sadly at the cost of Darren’s life.

This was compounded by the fact that Mr Cooper had received previous warnings in

relation to his working practices from HSE inspectors.

It gets personal!

› CASE STUDY 2 – CHESTNUT HOMES LTD

Prosecutions of directors and senior managers has increased four-fold in a five-year period. FACT!

“…We don’t have many accidents here…”

› What’s the problem with this?- A single accident can have a massive impact on the business Think long-term!

- Noise-induced hearing loss (NIHL)- Musculoskeletal problems- Work-related upper-limb disorders (WRULD)/RSI- Vibration white finger (VWF) - Dermatitis, etc.

“…They’d have to shut the whole City down…”

› Poor attitude to Health & Safety was mirrored in other areas of the business such as customer service, quality, HR…› Whereas a positive Health & Safety culture can ripple through to other areas› It’s all about having a system (organisation, planning and discipline, etc.) which is workable and simply becomes part of “the way we do things around here”

› BUT…this chap did have a point. Most of us are not fully compliant.

Common findings

› Key arrangements and risk assessments missing› Lots of documentation, but not implemented› Lack of competent advice - Few SME companies will have a full-time qualified H&S person› Lots of Safety Data Sheets (but no COSHH risk assessments)› No system for ongoing monitoring, measuring, auditing and review - Documentation dated 10+ years ago

But it’s not all about the paperwork…

“…Good health and safety management in any business/organisation has always been about action not paperwork, HSE’s new strategy makes it clear that we want everyone to play their part in preventing death injury and ill health caused by work activities. HSE remains committed to making it easier and simpler for people to take sensible and proportionate measures to protect people and enable their businesses to succeed…”

Judith Hackitt Chair, Health and Safety Executive

But paperwork will provide the evidence to helpdefend claims.

“…Insurers always pay out…”

› SHOW you’ve assessed risk› DEMONSTRATE that control measures are being implemented› EVIDENCE a means of check that safe systems of work are being adhered to› PROOF that your staff are trained and competent for their role

› SYSTEMS, SYSTEMS, SYSTEMS!

Staying on the subject of insurance…

› What does an underwriter look for? - Locks on doors, alarm systems, specific trade or business? - How is the business managed?

› The quality of your management can significantly influence the insurance terms you receive

› If you’re doing good things, make sure the insurer knows about them!

The True Cost of Insurance

PREMIUMc. £75K

EXCESSES PAID TOWARDS CLAIMS

c. £5K

LOSSES BELOW THE EXCESS

£???

The True Cost of InsurancePremium Fluctuations through the Market Cycle: NB. Premiums shown are for illustration purposes only.

____________________ Typical Trend ____________________ Sutton Winson Aim

Typical Premium Fluctuations through the Market Cycle

0

50

100

150

200

250

1 2 3 4 5 6 7 8 9 10

Year

Prem

ium

£

Case Study: Successful H&S Culture Change

› Large multi-site commercial vehicle franchise dealer in the motor trade› Sutton Winson acquired client in 2010. Insurance Premium £150K› 2010-11 Claims Experience out-of-control - £200K› 2011 Insurance Premium £200K+› Met with Board of Directors and told them some home truths:

- Housekeeping Poor- Site Managers Disengaged- Staff incentivized only by sales targets- Insufficient Control from Head Office over what happens at Site Level- Claims Performance was inferior to Peers


So what happened next?› We told client how much better they could be, and demonstrated this by comparison to others in the industry› We illustrated how much could be saved in terms of Insurance Premium, Excesses and Uninsured Costs/Attritional Losses› Commitment from Client› Commitment from Insurer (advice, funding and agreement to refund part of the premium retrospectively if we succeeded in achieving change)› Operations Manager given responsibility for driving through improvement


The Results?› 2011-12 Claims Experience - £60K› Company made large acquisition just prior to renewal. Premium based on 2011 rates set to be £320K› Actual Premium negotiated £274K (Saving £46K)› Retrospective Low Claims Rebate - £40K


How Did They Do It?› Insurance Premium and Claims Experience broken down per site› All “Out of Pocket” Attritional Losses recorded› Site results scrutinized. Some sites which achieved high sales were also generating claims and significant uninsured losses› Site Managers given renewed responsibility and targets for H&S› Regular visits to all sites by Operations Manager› New H&S arrangements introduced incl. Hi-Vis Policy, Workplace Transport.› Consequences for actions!› Site Safety Committees – employees embraced the new culture› Training incl. IOSH Managing Safely

The Role of Risk Assessment

› Whilst there is some useful guidance available from the HSE much of the legislation is not prescriptive› You need to carry out a risk assessment› There is an awful lot of legislation, and it is often misinterpreted › If you have 5 or more employees your risk assessments must be in writing› You need to identify all significant hazards (not trivial ones)› Priority is to eliminate the hazard altogether, otherwise control/isolate – PPE is the protection of last resort!› Control measures must be “reasonably practicable” which means balancing the level of risk against the measures needed to control the risk in terms of money, time or trouble

Topical Issues

› Manual Handling- Work-related musculoskeletal disorders (MSDs) account for over a third of all workplace injuries- Manual handling injures can happen anywhere from farms to construction sites to hospitals to factories and warehouses – even offices- There may be no short-term ill-affects but over 10, 15, 20 years……?- Theoretical and practical training at induction, and periodically thereafter- System of checking and monitoring practice among the workforce

Topical Issues

› Driving at Work- More than a quarter of all RTAs involve somebody who is driving as part of their work at the time [Department of Transport figures]- A vehicle used for business purposes constitutes part of the workplace- For some organisations, driving a vehicle may be the most dangerous task their employees perform – yet it is often overlooked!- Time pressures can be a big problem (the “Salesman” example)- Rest breaks monitored?- Checks to ensure vehicles being maintained/serviced (incl. tyre condition)?- Driving assessed as part of employment?- Licence audits undertaken and verified with DVLA?

Topical Issues

› Health (as well as Safety!)- Air Quality - Noise- Vibration- Heat Stress and Thermal Comfort

Risk Assessment will indicate whether exposure monitoring and health surveillance is necessary

- Stress (the next big thing?)

Topical Issues

› Housekeeping- A tidy workplace is a safe workplace!- Clear-out unnecessary clutter- Responsibility on individuals and Line Managers to keep workstations tidy- Avoid trailing cables, tools lying around on floor. Take out working quantities- of parts and consumables- Combustible waste should be removed from the building daily (check the “waste warranty” on your insurance policy)- Sweep up dust, residues, etc. - Regular checks to identify and address “Slips, Trips & Fall” hazardsThe standard of housekeeping can say a lot about a business!

Sutton Winson’s Approach to H&S

› Don’t just go in and quote legislation – interpret the legislation in a way that is practicable for your business› Appreciate commercial realities› A successful H&S management system cannot be put in place overnight. A staged action plan will break the task down into manageable chunks!› Once H&S is integrated into the day-to-day processes it merely becomes part of the way things are done› Changing the H&S culture within a workplace can take time, and a focus is needed on allocating roles and responsibilities, monitoring, and training› Training should focus on the benefits to be gained from H&S, rather than the consequences of ignoring it


› We won’t sell you expensive long-term consultancy via retainer› Our approach is to train, impart knowledge, and support clients to enable them to gradually “take the reins” › Hence, first year requires more of our time, but our role falls back to periodic monitoring and review thereafter› We won’t complete your risk assessments – we can’t. Only you know your workplace hazards, machinery, processes, premises, etc. intimately enough to be able to do this. We will provide full training on the risk assessment process.› We won’t just send you paperwork. We want to give something that adds value and improves your business.


› No standard “Gold”, “Silver”, “Bronze” packages – we will tailor to suit you.› We will take the time to understand your business first› We won’t work in a tick-box format› We won’t tell you what you can or can’t do› No clipboards!!!


› Services we can provide:› Assist with implementation of a H&S management system:- H&S Policy Statement- H&S Organisational Structure (Roles & Responsibilities)- Written Arrangements incl. Safe Systems of Work- Accident Procedures › Risk Assessment Training› Workplace Inspections› Periodic Reviews› Formation of (and participation on) H&S Committee› Accident Investigation


› Services we can provide:› Training:- IOSH Managing Safely (4 Days)- Tailored Sessions (subject or company specific)› Formal Corporate Audit

Communication› Email: [email protected]

› Telephone: 0845 688 9088 or 01444 251162

› Address: First Floor, Greenacre CourtStation RoadBurgess HillWest Sussex RH15 9DS

› Website: www.suttonwinson.com

› Twitter: @SuttonWinsonLtd

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