FROM NZCB —
Risk and insurance for builders Health and Safety on-site – you have heard it all before, right? But have you considered the other hazards and risks you’re exposed to on a daily basis, both on and off-site? As a builder, when you get to site each day you’re probably thinking about your plans for the day, the weather and the materials available. But events are taking place all around you. These hazards and risks exist 24/7 at and away from the site. How you identify and manage these exposures will often determine how successful and profitable the job or contract will be. It’s true, many of the practices and principles associated with risk identification and management have become engrained into your activities, adopted to comply with the Health & Safety at Work Act. This article is about wider exposures and using your health and safety practices to eliminate or minimise these as much as possible.
How to identify and manage your risks Risk profiling is the identification and categorising of the risks to which you and your business are exposed. Your risk profile is developed by: • examining the type and level of threats that exist; • considering the likelihood of adverse events and the level of disruption and costs associated with each type of risk; • analysing your willingness to take risks and your ability to absorb these risks. The results from this identification process are then used to manage risks and when this cannot be achieved in a suitable manner, the results will help you make insurance decisions. Here are some areas of consideration when ensuring the basic precautions are taken: Emergency procedures – Effective warning devices on hand; emergency procedures recorded and displayed; clear site access for emergency services; escape routes marked.
Hazardous substances on-site – Maintain current compliance measures including separation. Ensure security is appropriate for gas cylinders and similarly high value substances. Electricity and gas supplies – Ensure compliant installations throughout the site and subject to regular checks, especially after alterations. Hot work – Operate within the prescribed permit system, providing suitable extinguishers, scrutiny of work areas and cylinder storage facilities. Waste material – Maintain good storage, housekeeping and waste disposal standards with adequate clearance from buildings and no burning of waste on-site.
Prioritising your risk management measures Brokerweb Risk Services, have access to analytical data that will help you identify significant insurable exposures in construction and other industries. The data culminates in a hazard index table which rates twelve classes of insurance for your industry according to the likelihood and severity of losses. These ratings have been developed using historical claims and loss data for the building industry. It is recommended that additional factors specific to individual businesses, such as location and type of building activities, be taken into account when assessing this information. Insurance Classes – Rated by Hazard Index
Fire protection – Early warning devices; extinguishing equipment and training to use; evacuation procedures; adequate water supplies. Security – Site perimeter security; in-vehicle security; illumination, daily security check at the site; waste disposal and protection of hazardous material to prevent arson. During construction – Appoint H&S and other roles required by law; keep mechanical equipment clear of combustibles; protection of and training to use equipment. Temporary buildings – Maintain adequate separation from other structures and exercise caution with heating, cooking and smoking within temporary buildings.
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Work site safety, evidenced by Workers Compensation (ACC) exposures, is the most significant hazard rating. Improving these statistics was, in part, the purpose of recent health and safety legislation. However, hazard ratings shown on the table above demonstrate that other exposures can be mitigated by purchasing insurance.
