Flooring contractors: how does insurance actually help?

By James Parrott – Commercial Account Executive

If you’ve been keeping an eye on the news in recent months, you’ll have seen that there have been incidents where companies have been fined by the HSE after a worker has had life changing injuries or a worker has tragically died. We wanted to take a look at what types of risk flooring contactors might face and how insurance can help if the worst happens.

What do you need to be aware of?

Like many jobs in the construction industry, working as a flooring contractor can involve a variety of risks which need to be managed. Under the Health and Safety at Work Act (1974), employers have duties towards employees and members of the public, plus self-employed people also have certain duties to ensure safety. Then there are requirements under other legislation and regulations, such as the Construction Design Management Regulations (CDM 2015), which you have a responsibility to comply with as well.

There are many risks that flooring contractors face, and we’ve listed just some of them here:

• Construction dust
• Demolition dismantling and structural alterations
• Excavation 
• Electrical equipment and installations
• Equipment, including tools and machinery 
• Fires at third-party locations
• Hand-arm vibration/vibration white finger
• Working with hazardous substances
• Manual handling
• Noise
• Stacked materials 
• Working with pressure systems
• Waste disposal and water safety
• Working at height (this may be overlooked given it’s a floor being laid, but how do materials reach their installation point)
• And more…

It's easy to see how these factors, if not properly managed and controlled, could potentially lead to harm, in turn leading to HSE intervention, investigation or enforcement action.

Let’s take tools as an example. If the right tools aren’t available for a job, using a tool not intended for that use could cause harm. Even if the right tools are available, unfortunately it can be all too common for employees not to use them – whether that’s due to a lack of maintenance, lack of training or simply cutting corners. This can be a real issue which could lead to injury or worse, and employers should take every step they can to ensure their employees are using the right tools in the right way, for example with the appropriate guards in place. This could extend to daily inspection/testing of tools as Portable Appliance Testing regulations (PAT) are on a risk assessment basis.

It's potentially risky employee behaviour like this which underpins why all employers must have health and safety management to assess, control and review the risks of the workplace and its activities, including carrying out risk assessments, providing training, maintaining safe and healthy working conditions and much more. Plus, employees will be expected to commit to taking reasonable care of themselves and of other people around them. 

But, as recent examples have shown, accidents or harm can still happen. So what will the right insurance do for you at that point?

What could your insurance cover?

It’s always best to do everything you can to manage risk in order to avoid injury and accidents. The implications of these can go far beyond the direct costs they result in. For example, it can cause loss of reputation resulting in you losing business, plus there are the moral implications of knowing that a person has sustained an injury or worse at work. That said, having the right insurance in place gives flooring contractors important peace of mind that if something does go wrong, your business could have some protection.

Personal injury or fatality costs – The Employer’s Liability Act (1998) places a vicarious liability on the policyholder which means that, as the employer, you’re fully responsible for the actions of your employees. In the event one of your employees has an accident or is harmed in some way, then it is expected they will bring a legal claim against their employer. This will be responded to via your Employer’s Liability policy, including costs incurred as a result of loss of earnings, life-changing injuries or similar. The same is true for third party persons and property under Public and Products Liability.

Legal costs – If you’re trying to defend or mitigate a prosecution, you’re going to incur legal costs. Those legal defence costs are automatically included within your Employer’s, Public and Products Liability insurance up to an amount stated in your policy, which means making a case for your company will be much more affordable. 

Personal lawsuits and regulatory investigation – If you have Directors’ and Officers’ Insurance, this will provide financial protection for mounting a defence if a personal lawsuit is brought against you, and help cover any damages or settlements that are part of the case, or a regulatory investigation brought by an official body such as the HSE.

Loss of an important person – If an important person in your organisation dies and this leads to financial impacts, having Key Person insurance will help ease this. While nothing can replace the person you trust and value, you can safeguard against the financial loss.

Life and Personal Accident insurance – This can pay out if someone dies or is injured without anyone pursuing a legal claim for compensation.
 

What won’t be covered

Fines associated with HSE involvement – Your insurance won’t cover this cost. If businesses breach regulations and legislation, this is a penalty they are expected to pay for themselves.

Manage your risk upfront

While insurance offers protection in case the worst happens, reducing the chances of an accident happening in the first place is the best strategy. With a strong risk management-led culture in place, your insurers are more likely to view you as a lower risk and offer better terms on your insurance.

At Howden, we’re here to help. Our dedicated Risk Management team are specialists in your sector and can help you make sure you’re operating as safely as possible. Just talk to your broker about identifying the specific risks you face and selecting the right insurance products to cover them. Not only can it reduce the likelihood of accidents, but it could save you money on your premium too.

Speak to us about your insurance and the risk management services we offer to flooring contractors.