Starting a new business is an exciting time, full of opportunities and challenges. But it isn’t just about bringing your idea to life, making lots of money, and growing your business empire; there are other important things to do.
As you start out on this journey, it is crucial to understand the health, safety, and insurance requirements that exist for businesses, no matter how small. You must fill these requirements because, although you can’t see them on the surface, they can and will give you a big bite on the backside when something goes wrong. This could even put an end to your new business. In the UK, upholding these requirements is not just about legal compliance; it also means establishing trust and ensuring the safety and well-being of your employees and clients.
Just because your business is small doesn’t necessarily mean your risks are small, nor is your risk of falling foul of the law. I have worked for large organisations, and even the biggest and longest-established ones have the same challenges when it all goes belly-up. You simply can’t afford to take your eye off the ball, and it’s a mistake to kick the can down the road and plan to do everything tomorrow. When you’re busy running a business, especially a new one, tomorrow comes and goes in the blink of an eye, and a lot of things on your to-do list simply get overlooked. Here’s a user-friendly guide to help your start-up become aware of some of the legal requirements.
Health and Safety Obligations
Health and safety in the UK has a tried and tested foundation in legislation, and it actually works. The legal framework exists to protect businesses, employees, suppliers, customers, and the public; in fact, everyone. We’ll look at things in more depth elsewhere on the site, but here’s a starter outline. This is not an exhaustive list, and your specific obligations depend very much on your business.
1. Health and Safety at Work etc. Act 1974
The cornerstone of UK health and safety legislation is the Health and Safety at Work etc. Act 1974. This Act places duties on employers to ensure the safety, welfare, and health of their employees as far as is reasonably practicable.
Employer Key Responsibilities Include:
Providing and maintaining a safe environment: Implement protections against unsafe conditions both on-site and within your business operations.
Providing appropriate training: Employees must receive training to perform their duties safely and be able to recognise potential hazards.
Ensure effective communication: Clearly outline safety protocols and emergency procedures, and make sure they actually work.
2. Risk Assessment
As a business owner, you are responsible for suitable and sufficient risk assessments to identify and manage potential hazards in the workplace.
Recognition and Evaluation: Identify hazards, evaluate who might be affected and the severity of the potential harm, and prioritise risks. The assessments may identify other specific risks that have specific requirements, such as hazardous materials. These must be addressed in the correct way, and we’ll look at these elsewhere on the site.
Control Measures: Implement measures and controls to eliminate or control those risks.
Documentation: Record the findings and regularly update the assessments, especially when changes occur or if there is an incident. This isn’t a legal requirement unless you employ 5 or more people, but why would you not document it anyway? One less thing to do later as you expand and grow and get busier.
3. Health and Safety Policy
Businesses employing five or more individuals must have a written health and safety policy that outlines strategies to manage risks.
Statement of Intent: A declaration of your commitment to managing health and safety.
Organisational Responsibility: Clarify roles for health and safety management.
Specific Arrangements: Detailed procedures and arrangements to implement safety measures.
Again; why not write it down from the start? Make sure to update it every year or so too. Display it where employees can easily see it, such as on a noticeboard.
4. Appointing a Competent Person
You need a competent person to help manage health and safety responsibilities. This might be someone within your company with the expertise or an external specialist. It might be you if you have the necessary skills and time, or it can be someone else. The critical thing is competence and doing a thorough job. A bit too much is always better than a lot too little.
Insurance Requirements
1. Employers’ Liability Insurance
If your business employs one or more people, you’re legally required to have Employers’ Liability Insurance. This coverage provides a route to compensation for harm employees might suffer as a result of your operations, and protects your business against these claims.
Minimum cover: You must hold at least £5m of cover, although many insurers offer more.
Insurance certificate: Display your insurance certificate where employees can see it.
2. Public Liability Insurance
While not legally required, Public Liability Insurance is highly recommended. This insurance covers potential claims from third parties who may be injured, or whose property is damaged, as a result of your business activities. These claims can be enormous, and if not insured, can cost you everything.
Think about the nature of your operations and get professional advice to determine appropriate coverage levels.
3. Professional Indemnity Insurance
If you provide professional services or advice (such as consultancy, finance, or design), Professional Indemnity Insurance is crucial. It protects against claims of negligence or mistakes that might result from your services.
4. Additional Insurance Cover
Depending on your business, additional insurance might be necessary or beneficial. These can include:
Product Liability Insurance: For businesses involved in manufacturing or supplying products.
Commercial Property Insurance: Protects your business premises and contents.
Business Interruption Insurance: Covers lost income if operations are halted due to unforeseen circumstances.
Building a Culture of Safety
Successfully implementing simple health and safety measures and securing the right insurance coverage are just the basics. Fostering a culture of safety within your organisation can have long-term benefits. This involves engaging employees in safety initiatives, encouraging open communication about safety concerns, and continuously reviewing safety practices to adapt to new challenges and standards.
Understanding and implementing the required health and safety procedures and securing essential insurance coverage are integral to running a successful start-up in the UK. By committing to these responsibilities, you not only fulfil your legal obligations but also create a trusted and secure environment that can support business growth and success. As regulations and market conditions change, staying informed and responding to that change will ensure your business stays compliant and resilient.
This is just a taster of what you need to do, and we’ll look at other requirements elsewhere on the site. Remember, you must get competent assistance with your health and safety requirements.