Are you actually insured if there was an accident on your site?

Insurance is the missing link in the environmental, health and safety sector that could cost you a fortune.

Insurance is one of those things that most people know little about, and a small few have an encyclopedic knowledge of. We trust those in the insurance industry to know the ins and outs of the contracts we sign, the little details in lawyer-speak and Latin that can leave us scratching our heads.

Maybe it enters our mind once a year when renewing a premium, or at the start of a new business venture.

We like to know that we’re covered.

We can breathe easy knowing that if the unthinkable happens; a fall from a height, a chemical spill, damage to equipment or products, the safety net is there if needed.

But what if I told that a huge number of businesses, contractors and subcontractors are operating today with insurance and they may not be covered at all.

Does that sound a bit ludicrous to you too?

Read on.

How is this ludicrous?

When hiring a contractor or a subcontractor, we typically ask if they have employers’ liability insurance or public liability insurance. It's easy to assume that this will suffice, but it's not always the case.

Do you know that, if you declare to your insurer that you use bona fide subcontractors in your business, then there is a warranty on your policy which states in summary that, as the insured, you must check the subcontractor's insurance to make sure that they have adequate cover?

If you do not comply with this warranty and avoid checking their insurance, then your insurer will refuse to indemnify you. If a subcontractor does not have adequate cover, the third party can sue you, as you are the main contractor!

If this is a little hard to wrap your head around, let's look at some common occurrences where insurance may be void and what can be done about it.

Instances where insurance may be void:

1. Contractors working without adequate training - first aid, manual handling, etc.
2. Using chemicals without proper training or personal protective equipment (PPE)
3. Operating at heights above fifteen meters
4. Working in a confined space without adequate training

These are some of the more common instances where an insurance policy may be void, but there are plenty more.

67% of organisations are unware if their contractors are insured!

In a recent survey we completed of 290 companies based in Ireland, Europe and the US, the results suggest that 67% of organisations were unaware if their contractors were or were not insured.

While 73% had not checked for exclusions on policies!

That’s a staggeringly large number.

Other issues of concern when managing contractors were that:

• 38% failed to check if adequate safety/risk assessment information was provided,
• 61% did not check details of chemicals being brought onto site,
• 63% did not check if equipment certificates were valid,
• 27% did not check if contractors were competent or trained,
• 68% were not providing any form of contractors’ induction safety training,
• 74% were not checking contractors fitness to work certificates and
• 55% were not aware of their contractors’ performance history, such as claims and incidents.

It's alarming!

But, what if I told you there is a solution for businesses, contractors and sub-contractors to come together clearly and transparently so they can all sing from the same hymn sheet?

A magic dashboard that lets you have clear, real-time visibility of all your contractor companies' details (insurance details, safety manual, and risk assessments, licenses, etc.) and their employees (training records, background checks, etc.)

You really can manage every aspect of your contractor workforce with a few clicks, it is that easy!

Click here to find out more