Manufacturing businesses facing fines for health and safety negligence

Written by Ashley Prickett – Branch Director. 

Manufacturing businesses in the UK are facing increasing scrutiny over their adherence to health and safety (H&S) regulations, with hefty fines being levied for non-compliance. 

Recent high-profile cases have highlighted the dangers of unsafe machinery in workplaces, leading to serious injuries for employees and severe penalties for employers. These incidents shine a spotlight on the importance of robust safety protocols and the need for businesses to take proactive steps to reduce risk. This is where the role of an insurance broker becomes crucial in helping manufacturing businesses review their risks, implement stronger processes, and ensure that they have adequate coverage in place.

Recent fines – a wake-up call for the industry

In recent months, several UK-based manufacturing businesses have been fined – specifically relating to unsafe machinery. These machines, which were often poorly maintained or inadequately guarded, caused significant bodily harm to employees, ranging from serious injuries to, in some cases, life-altering disabilities.

One example involves a metal fabrication company that was fined £120,000 after an employee lost part of their hand while operating an unguarded cutting machine. Another case saw a food manufacturer penalised £360,000 after an employee lost four fingers when trying to unblock machinery. These incidents highlight the critical importance of maintaining safe machinery and ensuring that workers are properly trained in their use. However, many businesses are either unaware of their vulnerabilities or have failed to act on them.

These fines are not just a financial blow; in many cases this  leads to HSE intervention plus ongoing supervision and will also likely lead to reputational damage. In severe cases, this may result in the closure of the business.  Fines serve as a stark reminder that negligence in workplace safety is not just unethical but financially detrimental.

The role of insurance brokers in risk management

Insurance brokers play a pivotal role in helping manufacturing businesses not only insure themselves against potential risks but also in identifying those risks before they turn into costly incidents. A knowledgeable broker does more than just provide insurance policies – some brokers integrate risk management and will help to guide businesses on how to mitigate potential threats to their operations, employees, and bottom line.

Here are key ways in which an insurance broker may help manufacturing businesses:

1. Risk assessments and audits

Brokers can work with businesses to conduct comprehensive risk assessments of their operations. By identifying unsafe practices, outdated machinery, or gaps in safety protocols, they help businesses see where they’re most vulnerable. An audit may reveal that a certain piece of equipment is nearing the end of its life cycle or that employees haven’t been adequately trained to use it safely. 

2. Recommending best practices

After identifying risks, brokers can recommend best practices for improving workplace safety. This may include advising on regular maintenance schedules for machinery, installing proper guarding on potentially dangerous equipment, fire risk assessments, business continuity plans, or instituting better employee training programmes. 

3. Tailored insurance solutions

While prevention is the first line of defence, accidents still happen, but brokers can ensure that businesses are adequately insured for the specific risks they face. For manufacturers, this may include policies such as employer’s liability insurance, machinery breakdown insurance, or business interruption cover. An experienced broker will tailor these policies to fit the company’s unique risk profile, ensuring that in the event of an incident, the business is financially protected and able to recover.

4. Regular policy reviews

The manufacturing landscape is constantly evolving, with new machinery, technologies, and processes being introduced regularly. As these changes occur, the associated risks may shift. A good insurance broker will regularly review a business’s policies to ensure they remain adequate and up to date – adjusting as necessary to account for any new risks. This proactive approach helps businesses stay ahead of potential liabilities and ensures continuous protection.

The recent fines handed out to UK manufacturing businesses for health and safety violations should serve as a clear warning; neglecting workplace safety – especially when it comes to machinery – can have dire consequences. 

Partnering with an experienced insurance broker is an essential part of this proactive strategy. By conducting risk assessments, providing guidance on best practices, and ensuring adequate insurance coverage, brokers help businesses protect their most valuable assets; their employees and their financial health.