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Accidents & Ill Health; It pays to know the facts

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Each year employee accidents and ill-health cost British employers an estimated £3.9 billion to £7.8 billion, of which £910 million to £3,710 million comes from accidental damage to property and equipment.

It’s often assumed that insurance will cover any financial losses. But policies generally fall short when it comes to costs involved in the general day to day running of a business. The shortfall can be startling:
• Uninsured losses are ten times the cost of insurance premiums paid. (Source: HSE)
• Uninsured losses from accidents in smaller firms add up to £315 per employee, per year. (Source: Norwich Union Risk Services)

Other cost implications that are often overlooked include:
• Dealing with the incident – Immediate action means downtime for the injured person and anyone assisting. Time spent administering first aid treatment, a hospital referral or home rest, all result in downtime. Making the area safe and making machinery serviceable are more costs for which the business is accountable.
• Investigation of the incident – Time spent reporting the incident, holding meetings to discuss it and investigating it internally are the first step. Then time spent with an HSE, or Local Authority inspector and external consultants’ fees to assist with the investigation can rapidly accumulate into hidden costs.
• Getting back to business – Rescheduling work, recovering production, repairing damage and cleaning the site are inconveniences which slow production and reduce efficiency. Hiring replacement tools, people and equipment might also be required.
• Business costs – Absentee costs are deceptive. Besides the salary of the injured worker, a combination of replacement staff salaries, lost time, reduced productivity and quality add to escalating costs. Training new or temporary staff, overtime and contract.
• Increased insurance costs – higher premiums following an incident, cost associated with conditions being applied in order to gain cover.

It pays to fulfill your legal obligations with regard to Health & Safety, this way you reduce the chances of having a claim refused and all the additional costs listed above, which will probably include the cost of fulfilling those obligations in the first place. So why pay twice?

For assistance contact us at www.anchorhands.co.uk

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Assessment

Good health and safety at work is important not only in human terms, to help reduce workers’ pain and suffering. It is also a way of ensuring that enterprises are successful and sustainable, and that economies thrive in the long term.
For most enterprises, simple cost benefit analysis will not be necessary or appropriate in this area. Businesses have moral Occupational Health & Safety obligations, as well as legal and financial ones. It is impossible to quantify costs such as suffering in monetary terms.
Nevertheless, there are quantifiable costs and benefits involved in OSH, which businesses should be aware of.

Getting Health & Safety Right!
For enterprises, good Health & Safety helps to:
• enhance ‘brand image’ and ‘brand value’ as a socially responsible business (which may affect investors’ decisions)
• reduce absences and increase the productivity of workers
• increase motivation and the commitment of employees to the business
• reduce business costs, such as insurance premiums, and business disruption
• enable enterprises to meet and exceed customer expectations.

Getting Health & Safety Wrong!

If businesses get Health & Safety wrong, the costs of accidents and ill-health can be substantial.
For the individual, there are the costs of care, loss of earnings etc.
For businesses, disruption, claims for damages, loss of goodwill and loss of confidence in management can sometimes lead to total collapse. For small companies particularly, occupational accidents can have a major financial impact.

So Why Invest in Health & Safety?

Research shows that investing in Health & Safety leads to better company performance.
A good working environment is good business.

All workers have a right to work in places where risks to their health and safety are properly controlled.

Health and safety is about stopping them getting hurt at work or ill through work.

What employers must do for employees

Decide what could harm them in their job and the precautions to stop it. This is part of risk assessment.

In a way they can understand, explain how risks will be controlled and tell them who is responsible for this.

Consult and work with them and their health and safety representatives in protecting everyone from harm in the workplace.

Free of charge, give them the health and safety training they need to do their job.

Free of charge, provide them with any equipment and protective clothing they need, and ensure it is properly looked after.

Provide toilets, washing facilities and drinking water.

Provide adequate first-aid facilities.

Report injuries, diseases and dangerous incidents at work to the HSE

Have insurance that covers them in case they get hurt at work or ill through work.

Display a hard copy or electronic copy of the current insurance certificate where they can easily read it.

Work with any other employers or contractors sharing the workplace or providing employees (such as agency workers), so that everyone’s health and safety is protected.

What employees must do

Follow the training they have received when using any work items the employer has given them.

Take reasonable care of their own and other people’s health and safety.

Co-operate with their employer on health and safety.

Tell someone (their employer, supervisor, or health and safety representative) if they think the work or inadequate precautions are putting anyone’s health and safety at serious risk.
If you would like to discuss how to improve the health and safety of your business then please feel free to contact us via our website www.anchorhands.co.uk

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Could your Life Cover be more Tax Efficient?

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If you are a Company Director looking to provide Life Assurance to help provide financial security for your employees, or your own loved ones, then there is a way of paying premiums in a more Tax Efficient way.

As the premiums are paid by the company, they are usually considered as a business expense and are not treated as a benefit in kind so:

  • as the policy premiums are treated as a business expense they are likely to be an allowable deduction against Corporation Tax
  • there is no liability for National Insurance for employers or employees on the policy premiums
  • there is no liability for employees to pay Income Tax on the policy premiums
  • the death in service benefits are paid tax free to the nominated beneficiaries
  • the death in service benefits do not form part of an individual’s lifetime allowance for pension savings
  • the policy premiums do not form part of an individual’s annual allowance for pension contributions

So, taking out a Relevant Life Policy could be a tax efficient solution to provide valuable death in service benefits for individual employees:

  • where the number of employees is too low for a company group scheme or,
  • who may require more life cover than the main Company scheme provides.

Please remember that tax treatment depends on individual circumstances and may change in the future.

If you would like to discuss the benefits of paying Life Assurance through your company then I am happy to have a chat to explain it in more detail.  www.eurekafs.co.uk

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