Saving on the cost of employee accidents and ill health is an investment in the future of your business, the HSE has said, adding that maintaining a good standard of health and safety in the workplace can mean lower insurance premiums and more money in the bank.

Employers are responsible for the health and safety of their employees while they are at work. With very few exceptions, employers must have Employer Liability Compulsory Insurance to cover for injuries and ill health experienced by their employees while at work.

Employers may also have insurance for accidents involving vehicles, and possibly third-party and buildings insurance. However, insurance policies only cover a small proportion of the costs of accidents.

Costs not covered by insurance may include:

• sick pay;
• lost time;
• damage or loss of product and raw materials;
• repairs to plant and equipment;
• overtime working and temporary labour;
• production delays;
• insurance investigation time;
• fines;
• loss of contracts;
• legal costs; and/or
• loss of business reputation.

Says the HSE:

"Preventing accidents and ill health at work helps you build a good reputation with your clients, your workers, their friends and associates. You have worked hard to build a positive and respectable image for your business. It's vital that your business keeps that good name. Good public relations increase sales and generate more leads.

"If your company comes into disrepute for any reason, including avoidable injury or accidents in the work environment, or continued employee ill health, it can cost you more than replacing that member of staff.

"Uninsured costs can outweigh the insured costs - and these uninsured costs come straight off your company's 'bottom-line' profits. Poor health and safety procedures could mean increased insurance premiums or difficulty in obtaining future insurance cover."