1. Health & Safety:
ââŠHow to be responsible, box clever and make your business better and saferâŠâ
by Martin Coppard ACII CBCI Tech IOSH,
Risk Manager
05.06.2014
2. Introduction to Martin Coppard
âș 20yrs+ experience in commercial insurance underwriting and broking
âș Now undertaking role of Risk Manager
âș Chartered Insurance Broker (ACII)
âș Technical Member of Institute of Occupational Safety & Health (IOSH)
âș Certified by the Business Continuity Institute (CBCI)
3. Introduction to Sutton Winson
âș Established 1955
âș Independent Insurance Broker (Commercial and Personal Lines)
âș c. 110 staff
âș Three Offices: Twickenham (Middlesex), Burgess Hill (West Sussex) &
Petersfield (Hampshire)
âș Working with the PPMA for 7yrs+
âș Risk Management Team provide H&S, HR, Business Continuity, Fleet,
Supply Chain and other risk management support
4. So, what do we think about Health & Safety?
âș Realms and realms of paperwork
âș Needless beaurocracy
âș Over-the-top
âș Impractical
âș Over-burdening/Stops us working
âș Source of revenue for HSE/local authorities/consultants
âș âMan with a Clipboardâ
âș Waste of time
âș âItâs all commonsenseâ
5. Why bother about it?
âș 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 âDo the right thingâ
6. Why bother about it?
âș MORAL
Hereâs a thoughtâŠ..
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?
7. Why bother about it?
âș LEGAL
- In an ideal world organisations would self-regulate or self-police (but
unfortunately not all are sufficiently motivated or enlightened!)
-The moral âduty of reasonable careâ 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
8. Why bother about it?
âș 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
9. Why bother about it?
âș ECONOMIC
- Accidents and ill-health are costly!
- For every ÂŁ1 spent on insurance, the uninsured costs of accidents over a
year amount to between 8 & 36 times that amount [Source: HSE study -
âCost of Accidents at Workâ]
10. Why bother about it?
âș 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.
11. Why bother about it?
âș 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
12. It gets personal!
âș Directors and Senior Managers are at risk, as well as the Company
13. It gets personal!
âș CASE STUDY 1 â IC ROOFING
Amanda Huff, HSE Inspector:
ââŠThe tragedy of Darren Hoofeâs 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 himâŠâ
Detective Inspector Colin Dowle, Sussex Police:
ââŠThis 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 Darrenâs life.
This was compounded by the fact that Mr Cooper had received previous warnings in
relation to his working practices from HSE inspectors.
14. It gets personal!
âș CASE STUDY 2 â CHESTNUT HOMES LTD
Prosecutions of directors and senior managers has increased four-fold in a
five-year period. FACT!
15. ââŠWe donât have many accidents hereâŠâ
âș Whatâs 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.
16. ââŠTheyâd have to shut the whole City downâŠâ
âș Poor attitude to Health & Safety was mirrored in other areas of the business
such as customer service, quality, HRâŠ
âș Whereas a positive Health & Safety culture can ripple through to other areas
âș Itâs all about having a system (organisation, planning and discipline, etc.)
which is workable and simply becomes part of âthe way we do things around
hereâ
âș BUTâŠthis chap did have a point. Most of us are not fully compliant.
17. Common findings
âș Key arrangements and risk assessments missing
âș Lots of documentation, but not implemented
âș Lack of competent advice
- Few SME companies will have a full-time qualified H&S person
âș Lots of Safety Data Sheets (but no COSHH risk assessments)
âș No system for ongoing monitoring, measuring, auditing and review
- Documentation dated 10+ years ago
18. But itâs not all about the paperworkâŠ
ââŠGood health and safety management in any business/organisation has
always been about action not paperwork, HSEâs 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 succeedâŠâ
Judith Hackitt
Chair, Health and Safety Executive
20. ââŠInsurers always pay outâŠâ
âș SHOW youâve assessed risk
âș DEMONSTRATE that control measures are being implemented
âș EVIDENCE a means of check that safe systems of work are being adhered to
âș PROOF that your staff are trained and competent for their role
âș SYSTEMS, SYSTEMS, SYSTEMS!
21. Staying on the subject of insuranceâŠ
âș What does an underwriter look for?
- Locks on doors, alarm systems, specific trade or business?
- How is the business managed?
âș The quality of your management can significantly influence the insurance
terms you receive
âș If youâre doing good things, make sure the insurer knows about them!
22. The True Cost of Insurance
PREMIUM
c. ÂŁ75K
EXCESSES PAID
TOWARDS CLAIMS
c. ÂŁ5K
LOSSES BELOW
THE EXCESS
ÂŁ???
23. The True Cost of Insurance
Premium 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
PremiumÂŁ
24. Case Study: Successful H&S Culture Change
âș Large multi-site commercial vehicle franchise dealer in the motor trade
âș Sutton Winson acquired client in 2010. Insurance Premium ÂŁ150K
âș 2010-11 Claims Experience out-of-control - ÂŁ200K
âș 2011 Insurance Premium ÂŁ200K+
âș 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
25. Case Study: Successful H&S Culture Change
So what happened next?
âș We told client how much better they could be, and demonstrated this by
comparison to others in the industry
âș We illustrated how much could be saved in terms of Insurance Premium,
Excesses and Uninsured Costs/Attritional Losses
âș Commitment from Client
âș Commitment from Insurer (advice, funding and agreement to refund part of
the premium retrospectively if we succeeded in achieving change)
âș Operations Manager given responsibility for driving through improvement
26. Case Study: Successful H&S Culture Change
The Results?
âș 2011-12 Claims Experience - ÂŁ60K
âș Company made large acquisition just prior to renewal. Premium based on
2011 rates set to be ÂŁ320K
âș Actual Premium negotiated ÂŁ274K (Saving ÂŁ46K)
âș Retrospective Low Claims Rebate - ÂŁ40K
27. Case Study: Successful H&S Culture Change
How Did They Do It?
âș Insurance Premium and Claims Experience broken down per site
âș All âOut of Pocketâ Attritional Losses recorded
âș Site results scrutinized. Some sites which achieved high sales were also
generating claims and significant uninsured losses
âș Site Managers given renewed responsibility and targets for H&S
âș Regular visits to all sites by Operations Manager
âș New H&S arrangements introduced incl. Hi-Vis Policy, Workplace Transport.
âș Consequences for actions!
âș Site Safety Committees â employees embraced the new culture
âș Training incl. IOSH Managing Safely
28. The Role of Risk Assessment
âș Whilst there is some useful guidance available from the HSE much of the
legislation is not prescriptive
âș You need to carry out a risk assessment
âș There is an awful lot of legislation, and it is often misinterpreted
âș If you have 5 or more employees your risk assessments must be in writing
âș You need to identify all significant hazards (not trivial ones)
âș Priority is to eliminate the hazard altogether, otherwise control/isolate â PPE
is the protection of last resort!
âș Control measures must be âreasonably practicableâ which means balancing
the level of risk against the measures needed to control the risk in terms of
money, time or trouble
29. Topical Issues
âș 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 â even offices
-There may be no short-term ill-affects but over 10, 15, 20 yearsâŠâŠ?
-Theoretical and practical training at induction, and periodically thereafter
-System of checking and monitoring practice among the workforce
30. Topical Issues
âș 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 â yet it is often overlooked!
- Time pressures can be a big problem (the âSalesmanâ 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?
31. Topical Issues
âș 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?)
32. Topical Issues
âș 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
âwaste warrantyâ on your insurance policy)
- Sweep up dust, residues, etc.
- Regular checks to identify and address âSlips, Trips & Fallâ hazards
The standard of housekeeping can say a lot about a business!
33. Sutton Winsonâs Approach to H&S
âș Donât just go in and quote legislation â interpret the legislation in a way that
is practicable for your business
âș Appreciate commercial realities
âș A successful H&S management system cannot be put in place overnight. A
staged action plan will break the task down into manageable chunks!
âș Once H&S is integrated into the day-to-day processes it merely becomes
part of the way things are done
âș Changing the H&S culture within a workplace can take time, and a focus is
needed on allocating roles and responsibilities, monitoring, and training
âș Training should focus on the benefits to be gained from H&S, rather than the
consequences of ignoring it
34. Sutton Winsonâs Approach to H&S
âș We wonât sell you expensive long-term consultancy via retainer
âș Our approach is to train, impart knowledge, and support clients to enable
them to gradually âtake the reinsâ
âș Hence, first year requires more of our time, but our role falls back to periodic
monitoring and review thereafter
âș We wonât complete your risk assessments â we canât. 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.
âș We wonât just send you paperwork. We want to give something that adds
value and improves your business.
35. Sutton Winsonâs Approach to H&S
âș No standard âGoldâ, âSilverâ, âBronzeâ packages â we will tailor to suit you.
âș We will take the time to understand your business first
âș We wonât work in a tick-box format
âș We wonât tell you what you can or canât do
âș No clipboards!!!
36. Sutton Winsonâs Approach to H&S
âș Services we can provide:
âș 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
âș Risk Assessment Training
âș Workplace Inspections
âș Periodic Reviews
âș Formation of (and participation on) H&S Committee
âș Accident Investigation
37. Sutton Winsonâs Approach to H&S
âș Services we can provide:
âș Training:
- IOSH Managing Safely (4 Days)
-Tailored Sessions (subject or company specific)
âș Formal Corporate Audit
38. Communication
âș Email: martin.coppard@swib.co.uk
âș Telephone: 0845 688 9088 or 01444 251162
âș Address: First Floor, Greenacre Court
Station Road
Burgess Hill
West Sussex RH15 9DS
âș Website: www.suttonwinson.com
âș Twitter: @SuttonWinsonLtd