HEALTH

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HEALTH SAFETY

• AN INSURANCE PERSPECTIVE
• Euan Drysdale Keegan Pennykid

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

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

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• Why is the attitude so important?
• Management attitude determines the seriousness
  with which Health Safety issues are likely to
  be addressed.

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• 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.

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• 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.
  

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• 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.

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

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• 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 ?

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• How do you prove it?
• Why is it so important?

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SUMMARY

• 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.

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CORPORATE 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 dont know for certain check that your
  policy has been extended.

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• 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.

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CONTACT DETAILS

• Keegan Pennykid (Insurance Brokers) Ltd
• 50, Queen Street, Edinburgh EH2 3NS.
• Telephone [phone]
• Website www.keegan-pennykid.com