How Safety Programmes Can Lower Costs

If you could save your company money, improve productivity and increase employee morale, would you? Demonstrating the value of safety to management is often a challenge because the return on investment (ROI) can be cumbersome to measure. Your goal in measuring safety is to balance your investment vs. the return expected. Where do you begin?

Measuring Safety Costs

There are many different approaches to measuring the cost of safety, and the way you do so depends on your goal. Defining your goal helps you to determine what costs to track and how complex your tracking will be.

For example, you may want to capture certain data simply to determine what costs to build into the price of your service, or you may want to track your company’s total cost of safety to show increased profitability, which would include more specific data collection like safety wages and benefits, operational costs and insurance costs.

Since measuring can be time consuming, general cost formulas are available. If it is important for your organisation to measure safety as it relates to profitability, more accurate tracking should be done. For measuring data, safety costs can be divided into two categories:

  1. Direct (hard) costs, which include:
  • Safety wages
  • Operational costs
  • Insurance premiums and/or legal fees
  • Accidents and incidents
  • Fines and/or penalties
  1. Indirect (soft) costs, which go beyond those recorded on paper, such as:
  • Accident investigation
  • Repairing damaged property
  • Administrative expenses
  • Worker stress in the aftermath of an accident resulting in lost productivity, low employee morale and increased absenteeism
  • Training and compensating replacement workers
  • Poor reputation, which translates to difficulty attracting skilled workers and lost business share

When calculating soft costs, minor accidents costs are about four times greater than direct costs, and serious accidents are about 10 to 15 times greater. According to the International Risk Management Institute, just the act of measuring costs will drive improvement. In theory, those providing the data become more aware of the costs and begin managing them. This supports the common business belief that what gets measured gets managed. And, as costs go down, what gets rewarded gets repeated.

The Value of Safety

Studies indicate that for every £1 invested in effective safety programmes, you can save £4 to £6 as illnesses, injuries and fatalities decline. With a good safety programme in place, your costs will naturally decrease. It is important to determine what costs to measure to establish benchmarks, which can then be used to demonstrate the value of safety over time.

Also, keep in mind that your total cost of safety is just one part of managing your total cost of risk. When safety is managed and monitored, it can also help drive down your total cost of risk.

Considering the statistics, safety experts believe that there is direct correlation between safety and a company’s profit. We are committed to helping you establish a strong health and safety programme that protects both your workers and your bottom line.

Contact the insurance professionals at RHA Insurance Services to learn more about our value added services. Call us on 0203 960 2944 or email us at enquiries@rhainsuranceservices.uk.net or alternatively, visit www.rhainsuranceservices.uk.net to learn more about our tailored insurance schemes.

Motor Fleet Risk Management

Managing a motor fleet is exhausting work. Whether your business’ fleet consists of five or 500 vehicles, gathering them all together and managing their collective risk can feel like an endless exercise in futility. While addressing one specific risk, more different risks can pop up, demanding your attention. Instead of addressing risks as they develop and playing catch up, invest in motor fleet risk management strategies to stop problems before they appear.

Managing Risk

Risk management is a pre-emptive strategy aimed at analysing risks and implementing processes to reduce or eliminate them. A concerted risk management effort comes with many benefits, such as reducing business disruption and protecting your employees.

Although the process will vary slightly according to your needs, the five basic steps for analysing your business’ risks, listed below, should be the bedrock of any organisation’s risk management programme:

  1. Identify the hazards.
  2. Determine who might be harmed and how.
  3. Evaluate the risks and decide on precautions.
  4. Record your findings and implement a plan of action.
  5. Monitor and review the plan.

Following these steps can help you isolate and eliminate your business’ biggest risks.

Pricing Motor Fleet Policies

If you purchase a motor fleet insurance policy for your business, be aware that your premiums will be highly dependent on your business’ past claims experience. But an unfavourable claims history does not necessarily preclude a favourable and affordable motor fleet insurance policy—good risk management can translate to vastly improved policy terms.

Analysing Claims and Accidents

As part of an effective motor fleet risk management strategy, investigating your business’ past accidents can slash claims costs. Start by analysing the conditions that led to your business’ past accidents and any preventive measures taken to reduce them. Did they work? If not, consider new accident-reduction programmes.

Rely on your insurer to supply the past accident data that will serve as the foundation of your analysis. A typical claims and accident analysis should include the following information:

  • Accident circumstances such as day, date, time and location
  • Vehicle(s) involved
  • Driver(s) involved
  • Claim types
  • Cost analysis

Surveying Your Fleet

Some motor fleet insurers employ specialist fleet surveyors tasked with performing a more in-depth analysis that identifies significant problem areas and provides recommendations.

Insurers will sometimes provide surveys for free under the condition that the insured complies with the survey’s findings. Any resources the insurer expends on free surveys are expected to be recouped via the insured’s survey-compliant improvements and subsequent reduction in claim costs.

Because fleet surveys are more extensive and detailed, business owner and manager investment is central to success. Unless owners and managers are ready to support improvement initiatives spurred by the survey’s findings, the fleet survey will probably not achieve all of its objectives and will likely leave some risks unexamined.

Controlling Your Risks

Use the results from your internal analysis or external fleet survey to streamline processes and promote a positive health and safety culture. Apply the recommendations to your business’ management controls such as managerial structure, general processes and drivers’ handbook. Typical management controls which dictate how your fleet runs include the following:

  • Working hours policy: Consider the maximum number of driving hours, breaks and times of the day when driving should take place.
  • Working conditions: Interview drivers to figure out what practices need changing.
  • Route and workload planning: Study whether there are more efficient ways to allocate assignments and chart routes.
  • Mobile telephone policy: Enforce a mobile policy that complies with the law and stresses driver safety.
  • Safety equipment: Establish clear rules for using safety equipment such as seat belts, first-aid kits and fire extinguishers.
  • Vehicle controls: Adopt a ‘clean car’ policy which prohibits leaving any valuables in view and dictates that drivers can only park in secure places.
  • Responsibility for vehicles: Assign specific vehicles to drivers who are responsible for their condition.
  • ‘How’s my driving?’ schemes: Some businesses include stickers on their vehicles encouraging members of the public to call in with complaints or compliments, encouraging drivers to drive more carefully.

Reining in Your Risk

Reining in your business’ motor fleet and driver risks can feel like trying to hold water in the palm of your hand—no matter what you do, some risks slip through the cracks. Trust the insurance professionals at RHA Insurance Services to help you create an effective motor fleet risk management strategy and find you the perfect insurance policy that comprehensively covers all your needs. Call us at 0203 960 2944 to start bolstering your business today or visit www.rhainsuranceservices.uk.net to learn more about our tailored insurance schemes

The Impact of Workplace Bullying

Workplace bullying can take many forms—it can be directed at specific people or related to certain work activities. Specific definitions of bullying vary, but many describe it as negative behaviour targeted at an individual, or individuals, persistently over time. Workplace bullying can include, but is not limited to, the following:

  • Ignoring or excluding
  • Assigning unachievable tasks
  • Spreading malicious rumours or gossip
  • Delegating meaningless or unpleasant tasks
  • Making belittling remarks
  • Undermining co-worker integrity
  • Withholding information deliberately
  • Undervaluing contributions
  • Degrading others in public

Bullying can cause psychological health problems, such as depression, and physical health problems, such as sleep difficulties or stomach pains.

In general, targets of bullying feel a sense of isolation. In some cases, workplace bullying can leave the victim so traumatised that they feel powerless, disoriented, confused and helpless.

If you are the victim of bullying or have witnessed it in the workplace, it’s important to speak up.

Start by speaking to someone you feel comfortable with, like a manager or co-worker. It’s important to be specific and describe the behaviour you experienced or witnessed.

When it comes to addressing workplace bullying, it’s important to follow the policies and procedures established by direct Insurance Corporate Risks. Doing so can help ensure a safe and healthy workplace.

If you’d like to gain access to our workplace hub for HR support, risk management tools and much more simply get in touch today.

website: www.dicr.co.uk

email: info@direct-ins.co.uk

telephone: 01277 844 360

Waste and Recycling Insurance – The ins and outs

The waste and recycling industry is vital for keeping communities clean and providing environmentally friendly ways to reduce waste. Due to heavy investment in evolving technology and government support, this industry continues to grow. But, it also remains hampered by its own methods, which are perilous for workers. The dangerous nature of waste and recycling work can make insurers wary. But, without bespoke waste and recycling insurance, you risk letting your business go up in flames.

Who It Covers

The waste and recycling industry encompasses a wide variety of businesses differentiated by the materials they handle, the methods they employ and the equipment they use. Daily operations at some waste and recycling businesses can be radically different from those of other businesses in the same industry.

What links these different businesses together is that they all interact with waste materials. The broad range of businesses in the waste and recycling industry has pushed insurers to offer policies which can address the industry’s diverse needs. Waste and recycling insurance policies can cover the following businesses:

  • Skip hirers
  • Waste management
  • Landfill operations
  • Incineration plants
  • Waste to energy plants
  • Trade waste collection
  • Recycling operations
  • Consultants
  • Waste brokers

This list is not exhaustive. At Direct Insurance Corporate Risks we can work with your business to ensure it is covered. If you work with waste and recycling, we will fashion a policy that is perfectly tailored to your business.

Common Covers

The wide disparity between businesses in the waste and recycling industry means that waste and recycling insurance is not one-size-fits-all. You need a bespoke policy to cover your business’ distinct risks. Your policy should at least include the following common covers:

  • Employers’ liability
  • Public liability
  • Property damage
  • Business interruption
  • Fixed and mobile plant and machinery
  • Environmental impairment liability
  • Motor fleet

Policies vary among insurers for many reasons. Ensure yours addresses all of your business’ risks.

Common Extensions

Because waste and recycling policies are usually tailor-made for businesses, insurers must be able to offer a variety of options for businesses to choose from when constructing the best bespoke policy. Some common extensions include:

  • Legal expenses
  • Contingent motor liability
  • Sudden and accidental pollution
  • Defective premises
  • Spoilt melts
  • Personal accident
  • Clean-up costs
  • Landfill sites and waste tips

Again, this list does not represent the entirety of waste and recycling policy extensions. Talk to us for a full list of offerings to make sure your business is protected on all sides.

Common Exclusions

Although waste and recycling policies may seem like a blank slate, ready to be filled with a mixture of covers unique to your business, there are certain covers which the majority of insurers will always exclude. These exclusions include the following:

  • Asbestos and lead-based paint
  • Nuclear hazard
  • Natural radioactive material
  • Underground storage tank(s)
  • Divested location and property
  • Communicable diseases

Check your policy to find out what your exclusions are, since there is no standard waste and recycling policy. You may be able to cover normally excluded hazards by paying higher premiums.

Bespoke Is Best

Your industry may be dangerous, but that does not mean the future of your business needs to be. Rely on the insurance professionals at Direct Insurance Corporate Risks for the resources and expertise to safeguard your waste and recycling business.