Finding balance between risk and liability as a broker

"Furthermore, he must take out adequate insurance against such unfortunate OHS incidents on his premises,” says John Kilian, Risk Management Consultant at Safety Solutions Africa, a national health and safety consultancy, which specialises in corporate, construction, mining, transport, commercial, retail, agricultural, hospitality and education sectors.

"Under insuring means there’s not enough protection, the broker ends up taking a knock for the shortfall and the client is exposed to financial vulnerabilities. Over insuring could mean too much of a financial outlay for your client and the possibility of losing that client in the long-term. Balance is key in the current pressurised and competitive business environment.”

Firstly, Killian goes on to say that an insurance broker needs to identify the risk in the workplace. In this regard, an outside consultant can help look for the inherent risks at the work environment. "Many people tend to associate OHS with heavy machine accidents or falls, but there are other risks that are not as obvious at first glance,” he says.

"Office staff who spend a lot of time in front of computers can suffer vision problems or factory workers can develop repetitive strain injuries. No two work places are ever the same, which means they have their own unique OHS risks,” Kilian adds, "A consultant, with the right experience and insight, can either eliminate those risks or find a strategy to make them less serious, thus reducing the liability factor for the broker.”

Brokers, he points out, should approach a health and safety consultancy that has reach and influence, preferably one that has access to its own resources, whether it is in personal protective equipment or fire safety practitioners, psychologists or ergonomic designers or engineering experts.

 

"To find the right cover for their clients, brokers should partner with a consultant from the onset,” he stresses. "This takes a lot of the uncertainty, frustration and, of course, risk out of the process.”

For commercial or industrial insurance to adequately cover a client’s business and satisfy the OHS Act of South Africa, it needs to be multi-faced and make allowance for as many risk factors in the working and business environment. "It’s not an enviable task for any broker,” Kilian says. "The devil is in detail and there’s a lot to cover in the risk assessment stage. However, if you get it right, a successful OHS management strategy can save your client money and his reputation.”

Viewpoint important

"Sometimes a business owner or broker is to close to the business to see the potential threats in the workplace,” he adds. "We see it with an objective and experienced eye. A risk management consultant sees it all from an objective viewpoint. This allows him to pinpoint the risks as accurately as possible, as well as advise on the best features needed for OHS cover. Moreover, he will spot what is gratuitous and not necessary.”

Once cover is in place, brokers cannot afford to be complacent, warns Kilian, "Maintenance is probably the most important element in risk assessment and management,” he says. "There should be clear, written and agreed-upon maintenance plans in place as part of the process. The consultant can advise on audit dates; well-documented audits will be valuable when claims need to be settled or insurance disputes settled.”

Kilian believes a compliant OHS company is a healthy company. OHS with applied systems is also a very powerful management tool to minimise losses and increase profitability. "There must be a proactive approach to OHS in any organisation,” he concluded, "It not only protects workers but the reputation of the company, which often is important for profits and sustainability.”