Health & Safety: Still The Most Important Tool for Controlling Insurance Costs

Personal Injuries Commission confirms Irish soft tissue awards are now 4.4 times that of the UK.

The second and final report recently issued by the Personal Injuries Commission confirmed that the level of general damages for soft tissue injuries in Ireland is now 4.4 times the level awarded in the UK. The Commission’s findings only relate to general damages and do not include the cost of legal fees.

For Irish construction firms, it is more often the level of awards and legal costs associated with seemingly minor incidents that cause the most frustration. Even where there is a strong defence, the level of compensation awards, associated legal fees and uncertainty of a whether a court decision will go your way means that insurance companies often settle these claims early and ultimately business owners pay the cost.

As the economy grows and construction companies continue to expand their workforce to meet demand, the risk of an increase in claims and insurance costs grows also. Here are some ways in which companies can control their insurance costs.

Health & Safety
It goes without saying that a strong Health & Safety function is the number one way to keep insurance costs under control through the avoidance of accidents in the first place.

Trusted Employees
Good managers are a crucial component in managing site safety and identifying employees who demonstrate behaviours that indicate they may be a risk to themselves or others.

Higher Excess
Certain contractors are comfortable taking a higher policy excess in exchange for a lower premium. This can be in the form of an ‘aggregate deductible’ or increased ‘each and every claim’ excess.

Split the Payroll
Underwriters rate Employers Liability Insurance by applying a rate to payroll. It is important to split your payroll between site workers, foremen, drivers, surveyors, etc. Lower risk occupations attract lower rates.

Meet with underwriters
In certain circumstances, it can be beneficial for representatives from the company to meet with underwriters and explain the reasons why claims have occurred and what has been done to
prevent re-occurrence.

Dealing with an experienced construction insurance broker that has access to the best markets is essential. Martin Insurance has a 38-year history of arranging employers’ liability insurance cover for a long list of clients in the construction, manufacturing, waste, quarrying, plant hire & many other industries. Call us today 049 433 2944 or complete our online enquiry form.