Insuring against accidents
The problem
You're the manager of a busy hotel. Recently you have received two letters from solicitors, one concerning an injury to a guest six months ago and the other about an alleged injury to an employee who left the hotel a year ago.
Both solicitors are demanding information under pre-action protocols - and most of it isn't available. What are your options and what action should you take to mitigate future rising insurance costs?
Expert advice
With the creation of no-win, no-fee claims, the leisure sector is being battered by a rising tide of claims, many of them small, and which insurers frequently settle, forcing up overall insurance costs for the whole industry.
To control costs, owners and managers of leisure businesses must introduce effective systems for recording every incident involving loss or injury to guests or employees at the time the incident occurred.
An effective total incident management system can control and reduce costs by providing quality management information, enabling employers to identify emerging risks and apply sensible cost-effective risk reduction and control techniques.
An insurance broker or total incident management provider will be able to provide you with appropriate systems and check lists.
The Law
The Woolf Reforms introduced in April 1999 have revolutionised the way civil claims are dealt with by introducing strict Civil Procedure Rules which have to be followed by claimant and defence. A typical standard Woolf protocol letter can run to 30 or 40 items, requesting information such as copies of training records, health and safety committee minutes, pre- and post-accident assessments and RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations) forms.
A claimant's solicitor is entitled to a response within 21 days and all requested relevant information within 90 days. Failure to supply the information can adversely affect the insurers' ability to defend or reject the claim. Solicitors are entitled to ask for anything and everything they think could be relevant and if they don't receive it there's a court procedure they can follow to bring managers/directors into court to explain to a judge why the information requested hasn't been made available.
In addition, the Health & Safety Executive intends to issue guidelines by the end of 2003 on recording of incidents/accidents and the need for investigation.
Check list
Assuming the hotel is meeting every requirement of the relevant acts which affect the hotel, such as the Occupiers Act 1957 and the Health and Safety at Work Regulations 1992, then hotel managers should ensure that they keep the following information right up to date:
- Ensure that every incident, accident and even near-miss is investigated and that avoiding action is taken for the future.
- Maintain accurate training records.
- Create and retain minutes of all health and safety meetings.
- Carry out risk assessments on all aspects of the building and the business operations, taking special care where children are involved.
- Have systems in place for monitoring and checking constantly that the health and safety and food hygiene procedures are always followed.
- Make sure all staff understand the reporting procedures on legal requirements such as RIDDOR.
BEWARE!
Providing wrong or misleading information can lead in extreme cases to fines and imprisonment. In addition, legislation on corporate manslaughter charges is on the cards. If introduced, it will be easier for criminal prosecutions to be brought against an individual or the whole board of the company.
Contacts
John Davies
Alexander Forbes Corporate Risk Solutions, Alexander Forbes House, 6 Bevis Marks, London EC3A 7AF
Tel: 020 7933 0000
Health & Safety Executive
HSE Infoline
Tel: 08701 545500
