Karen Rimmer, Head of Distribution at PSG Insure
Handling chemicals comes with significant risks, not just for the safety of employees but for maintaining comprehensive insurance coverage. For businesses that regularly work with hazardous materials, ensuring chemical safety and regulatory compliance is essential to avoid insurance claim disputes or repudiations. Failing to meet these requirements could have serious financial consequences. Here’s what risk advisers should be informing their clients to ensure they stay compliant, safe, and fully insured.
Compliance with Legislation
When advising clients, stress the importance of adhering to relevant legislation. This forms the foundation of both operational safety and insurance compliance. Insurers typically assess a business’s adherence to laws and regulations when evaluating claims, making it crucial for clients to be fully transparent about their processes and chemicals used on-site.
Providing comprehensive and accurate information is not just best practice but a requirement for effective insurance coverage. Risk advisers should help clients understand and meet compliance requirements, guiding them through legal standards and making sure all chemical-related operations are fully disclosed to insurers.
Documentation and Licensing
Up-to-date licenses and permits are a must. Accurate documentation proves that a business complies with regulations, making it easier to navigate any potential claims process. As part of risk management, encourage clients to maintain regular fire safety checks, inspections, and accurate records to demonstrate ongoing compliance with both local and industry-specific legislation.
Demonstrating compliance is key. Keeping your licenses and permits current is non-negotiable when working with hazardous materials. Advisers need to ensure their clients are diligent in maintaining and updating these records.
Minimizing Risk
Chemical storage needs to be carefully managed, with premises equipped to handle hazardous materials. Risk advisers should help clients evaluate their storage facilities, considering factors such as fire protection systems, ventilation, and appropriate stacking of chemicals.
Improper storage of chemicals could lead to disaster, and insurers will look for evidence that best practices were followed when reviewing claims. Clients must adhere to building safety standards, with tailored fire suppression systems in place to mitigate potential risks.
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Preparedness is Key
One area often overlooked by clients is contingency planning for spills and emergencies. As a risk adviser, ensure your clients have spill response strategies in place, including trained personnel, safety equipment, and access to spill response experts. Encourage them to provide ongoing training to staff and maintain the necessary safety equipment to handle emergencies swiftly.
Having contingency plans for chemical spills is non-negotiable. Risk advisers should check whether clients have adequate safety systems such as fire walls, separate storage areas, and proper ventilation systems, which all contribute to enhanced risk management.
Don’t Overlook Home Risks
Chemical safety extends beyond the workplace. Risk advisers should remind homeowners that common household products, including non-stick sprays, insect repellents, and pool chemicals, also present hazards. Improper storage can lead to accidents, fires, or even health risks.
One often-overlooked risk is leftover paint stored in the garage. These products are highly flammable and should be stored away from heat sources and direct sunlight. Advisers should stress the importance of keeping chemicals, especially flammable products, in a cool, dry, and well-ventilated area, to reduce the risk of fire or accidents.
Engage Regularly with Insurance Advisers
The role of risk advisers is crucial in helping clients regularly review and update their insurance policies to reflect their current operations. Whether it’s a business storing industrial chemicals or a household storing paint, insurance policies need to be tailored to their specific risks. Encourage clients to engage with their insurance advisers frequently, ensuring that coverage remains comprehensive and aligned with any operational changes.
Proactive engagement with insurance professionals is essential for ensuring adequate coverage. By prioritising safety and maintaining compliance, both businesses and homeowners can mitigate risks and be better prepared for any incidents.
Safety and Compliance Ensure Coverage
Risk advisers have a vital role in helping clients align their safety practices with insurance requirements. Ensuring compliance with legislation, implementing safe storage practices, and staying informed about insurance conditions are critical steps. For businesses and homeowners alike, safety and compliance don’t just protect against accidents—they ensure that insurance coverage remains intact when it’s needed most.