At a glance
- Customers may be unaware of their duty to periodically inspect their equipment, leaving them vulnerable to regulatory action or even criminal prosecution if something goes wrong
- Beyond legal compliance, engineering inspection contracts can also generate a host of wider business benefits
- Zurich looks at five key reasons why your customers can benefit from engineering inspections
Although health and safety laws contain a number of provisions relating to inspections of work equipment, many customers may be unaware of the extent of their responsibilities, or may only choose to inspect items specifically referenced in legislation.
Engineering inspection contracts not only help to ensure legal compliance, but can also add great value to a business’s operations.
Provoke discussions with your customers and find out more about their needs with these five key reasons why they can benefit from engineering inspections.
1. Complying with the law
A number of health and safety laws exist to ensure equipment will not harm workers or the public. Collectively, this complex body of law covers all types of working equipment – be it an electrical socket, air-conditioning system or passenger lift. All businesses of all sizes will be affected in some way and many will need an engineering inspection contract.
Failure to comply with these laws can attract large fines, and the most serious cases of negligence can lead to imprisonment. Customers need to be aware of their duties regarding inspections, and ensure they have taken appropriate action.
“Establishing inspection requirements can be difficult for customers,” says John McMullen, Chief Engineer at Zurich. “But, unfortunately, ignorance is no excuse under the law.”
To better understand customers’ inspection needs, brokers can visit Zurich’s Online Plant Guide. This interactive tool helps identify plant and machinery, view legal requirements and determine recommended inspection frequencies.
2. Avoiding costly Fees for Intervention
Since 2012, the Health and Safety Executive (HSE) has been able to charge Fees for Intervention (FFI). These fees are charged against any time spent or actions taken by the HSE, from the moment it identifies a material breach in health and safety legislation, to the conclusion of any investigation and/or enforcement action. With the HSE charging £124 per hour, these fees can soon add up.
Key legislation concerning the need for regular inspections
- Health and Safety at Work Act (HASAWA)
- Provision and Use of Work Equipment Regulations (PUWER)
- Lifting Operations and Lifting Equipment Regulations (LOLER)
- Pressure Systems Safety Regulations (PSSR)
- Control of Substances Hazardous to Health Regulations (COSHH)
- Electricity at Work Regulations (EAWR)
Health and safety law requires customers to have reasonably practicable inspection and maintenance regimes. Without evidence of such a regime, the HSE could identify a material breach and begin charging FFI.
“One thing the HSE is targeting at the moment is local exhaust ventilation (LEV), which includes anything that removes dust, fumes, vapours, etc,” says John.
Businesses need to think about:-
- What they do that involves hazardous substances?
- How can these cause harm?
- How can these risks be reduced?
“Air conditioning is also something that many people overlook. Infrequent inspections can, in extreme cases, lead to serious corrosion and a potential explosion, and depending on the size of the pressure unit, the Pressure Systems Safety Regulation (PSSR) may stipulate how regularly inspections need to be conducted.”
Evidence of compliance with health and safety law is very important if customers are to avoid interventions from the regulator. An engineering inspection contract helps demonstrate compliance, independence and impartiality as well as giving customers an opportunity to identify defects early, before they cause damage or harm.
3. Defending a claim/prosecution
Even with the most rigorous inspection and maintenance regimes, accidents can happen. Should someone be injured or lose their life, this may result in a personal injury claim and/or criminal prosecution against the organisation and its directors personally.
The Corporate Manslaughter law has also gathered momentum since it came into force in 2008. With the Crown Prosecution Service bringing new cases to trial each year, it is more important than ever that organisations ensure their health and safety risks are properly managed.
“When assessing questions of liability, the courts will look at the law and assess whether the applicable duties were met,” says John. “Having the equipment in question documented as inspected regularly by a competent person or organisation, such as Zurich, can greatly increase your chances of defending a claim and/or criminal prosecution.”
4. Avoiding equipment downtime
An engineering inspection contract is not just about legal compliance; it can also add huge value to a business’s operations.
When equipment unexpectedly fails, a business can be faced with a period of downtime while it is repaired or replaced. This can eat into profit margins through lost production, repair/replacement costs and hire charges.
Engineering inspections are not only good for safety, but also good for business.”
John McMullen, Chief Engineer at Zurich
Regular inspections can identify potential issues before they lead to equipment breakdown/malfunction, giving organisations the opportunity to conduct planned maintenance at a time that suits them.
“If you work on a breakdown approach, then your business is often out of action until the equipment is repaired,” explains John.
“However, if you adopt a planned maintenance approach, with regular inspections at the core, then you are in control of the equipment’s downtime, and can minimise any lost production capacity and avoid unexpected costs.
“Engineering inspections are therefore not only good for safety, but also good for business.”
5. Improving efficiency, longevity and environmental impact
Identifying potential defects early can help machinery to run more efficiently, last longer and use less energy.
“Environmental impact is a key measure for businesses nowadays,” says John. “More and more people ask us how they can reduce theirs. Regularly inspected, well-managed equipment can certainly help towards achieving that goal.”
Helping brokers to help customers
Zurich is a market leader in both inspection service contracts and insurance solutions and can help brokers protect their customers’ machinery. Find out more about engineering inspections cover, or for more information, please contact your local account executive.