Corner Cutting Fears
Whilst many businesses need to control costs to survive, this year there is real concern that organisations will also cut corners, leading to an unsafe working environment.
A quarter of business leaders say that their organisation will face pressure to cut health and safety budgets during the recession, with 22% of workers in small businesses fearing that their employers will cut health and safety corners.*
A reduction in spend and focus could mean that:
- Machinery, faulty or old equipment and vehicles may not be replaced. Servicing and maintenance may also be cut back, which could lead to machinery fatigue related injury claims.
- Buildings may not be adequately maintained, making them hazardous or vulnerable to theft or weather.
- Reduced spending on health and safety staff, processes and training may occur as firms strive to make money on core functions.
In addition, in today's economic climate, increased liquidation and downsizing of suppliers can disrupt key partnerships, leading to unfamiliar working practices and greater risk of damage or injury. If spending cuts are enforced, businesses should look at ways to ensure that health and safety is not compromised. It is potentially a false economy to cut back spending on health and safety procedures and processes when you consider the positive cost benefits from an operation that is well maintained.
When managing costs, businesses may also look at their insurance programmes; some firms may be tempted to cut estimates and sums insured or simply cancel covers to reduce premiums. We recommend you speak to us for advice as these actions could have huge ramifications for your business.
We can give you advice on the costs and risks to your business, enabling you to maintain essential covers and keep your business adequately protected.
*Source: Health and Safety Executive. Reproduced under the terms of the Click-Use License