When you’re looking for a contractors liability quote, it’s standard practice to provide the clients H&S information. But why do underwriters ask for this and what are they looking for?
There are two main reasons why this information is requested –
- To write cover for well managed construction businesses, that comply with all regulatory requirements.
- To assist with claims defensibility.
There are three factors to bear in mind when considering claims:
- There must be a duty of care.
- That duty of care must have been breached.
- That breach of duty must have resulted in injury or damage.
Duty of Care
Health & Safety legislation requires that, as far as is reasonably practical, employers must ensure the health and safety of all employees. Their responsibilities under this include safe plant and safe working methods, and the provision of training, supervision, and adequate PPE.
These responsibilities also extend to protect anyone who is affected by work activities – this includes sub-contractors, site visitors and the public.
The Health & Safety at Work etc. Act 1974 (HSWA) must be complied with by both employers and employees – failure to do so could result in criminal prosecution. There is separate legislation, the Management of Health & Safety at Work Regulations 1999, which details what employers must do to manage H&S under HSWA.
Claims defence
Companies are required to have recorded procedures in place to protect employees and the public. High standards of documentation are required for claims defence. Key documents include:
Accident investigation reports
All incidents, accidents and near misses must be recorded and investigated, this includes those that do not need to be reported under RIDDOR. Investigations should be undertaken by trained staff, documented with supporting evidence, and post incident reviews of H&S procedures should be carried out. Any required changes must be implemented and documented.
Risk assessments and method statements (RAMS)
Safe systems of work and assessment of risk are vital to any claims defence. These must be carried out specifically for different activities and at different locations – no two sites will have the same hazards. The more thorough and specific they are, the better chance of claims defence.
Training records
Poor training records are a common feature of successful EL claims. Training that should be carried out and documented includes:
- > Induction training
- > Employee’s qualifications
- > How to correctly complete RAMS
- > Training matrix – this should include both completed and refresher training
- > Toolbox talks.
Documenting this information is important, ensuring that it is signed by the employee is vital to evidence not only that they have had the training, but also that they have understood it. This is paramount in claims defence, and in considering any contributory negligence.
Management and supervision
An employer must be able to demonstrate that their employees are suitably managed. Whilst this can be difficult, qualifications such as NEBOSH and IOSH and the following records will assist:
- > Proactive approach to accident investigations including near misses, ensuring issues are addressed.
- > Statutory inspections, workplace inspections, and pre-handover checks.
- > Disciplinary procedures in place for violation of H&S.
Good quality documentation can reduce claims costs, it can highlight contributory negligence, and it can successfully defend a claim. It can also reduce legal costs if documentation is readily available to provide to claims investigators.
Have a Contractors based risk?
- Send the proposal form or presentation to becky.jones@:t-u-l.co.uk
or - Call us on 01923 298 440 to speak with an underwriter
@touchstone-underwriting-limited
@touchstoneuw