For all their ambition, drive, and determination, business owners cannot afford to overlook safety, including adequate physical and mental health provisions in the workplace. Even with the best possible safety procedures and protocols, accidents can still occur.
Undoubtedly, some sectors are higher risk than others, however, safety should never be an afterthought in any business. Employers have a duty of care to uphold employee safety, and if an employee suffers an injury at work, there is a chance that they could file a personal injury claim against your business.
How you respond to such a claim can determine whether your defence has validity and credibility, or whether your reputation suffers a devastating blow. With that in mind, let’s explore what you should do in the face of a claim.
Looking at Workplace Injury Claims
Personal injury claims from employees are more common than many business owners realise. From slips and trips in warehouses and traffic accidents in company vehicle fleets to injuries involving animals on farms and spinal injuries in educational facilities, accidents can happen everywhere and anytime.
While most claims are handled by a client’s liability, employer liability and other relevant insurances, businesses can be left exposed and potentially liable in certain circumstances: these include having void or no insurance cover, claims below excess thresholds, or breach of policy terms.
Therefore, businesses must ensure they have a secure strategy in place, should they be dealt a personal injury claim from an employee.
How to Respond to a Personal Injury Claim
When an accident occurs, your immediate response as a potentially liable business establishes what defence takes place, assuming it gets that far.
One recommendation is to create a comprehensive accident log that captures every intricate detail, which can involve photographing the scene, documenting environmental or weather conditions, illumination and visibility impairments, the handling of machinery or equipment, and other sector-specific variables. The injured employee must have signed the accident report to ensure they are satisfied with the circumstances.
Employers should primarily focus on gathering information, interviewing witnesses separately (if necessary) to document their accounts in their own words, obtaining CCTV footage before it’s wiped, and collecting all relevant documentation (e.g. risk assessments, equipment servicing documents, safety policies, and so on).
What Happens if Insurance is Insufficient?
Even with comprehensive employer's liability insurance, gaps can create problems.
If your business has a high excess and the claim value sits below this threshold, you'll need to handle the defence personally. Similarly, if your indemnity limit is exceeded or if there's been a technical breach of your policy terms, insurers may decline coverage.
Construction and manufacturing businesses face particularly complex challenges regarding the employment status of contractors or subcontractors. For instance, if someone you believed was a self-employed professional and is later deemed an employee, your insurance may not provide adequate coverage, leaving you personally liable for defending the claim.
How to Defend Your Business
Follow the below guidance when it comes to creating a robust defence strategy should you be faced with a claim:
- Maintain comprehensive safety records, documenting your due diligence, risk assessments, health and safety policies, and evidence of adequate training.
- Ensure equipment and machinery are properly maintained and serviced, and retain records proving this adequately meets mandatory standards.
- Confirm that the affected employee was following safety requirements and whether they were authorised and trained to handle the task(s).
- Notify your insurers immediately after receiving a claim, even if you suspect contributory negligence.
- Keep detailed records of all communications and engagements.
- Consider engaging personal injury defence solicitors if insurance support won’t suffice, particularly before claims escalate.
- Handle all communications professionally and avoid admitting liability in any correspondence. Consider how the claim might affect your relationships with clients, other employees and suppliers, if they’re in any way affected.
- Familiarise yourself with the rules of vicarious liability and whether it’s possible that it could be a factor.
- Be transparent about lessons learned from any incident, however minimal. Provide additional training where needed and update risk assessments, procedures and more.
- Prevent (and minimise the risk of) any incidents, above all else. Conduct regular safety audits from valid third parties.
- Create a culture where employees feel comfortable reporting near-misses as well as accidents, and avoid creating instances where they feel they have to sugarcoat their concerns, or ‘brush them off’.
- Retain full records of any claims received. Remember that personal injury claims can be filed up to three years after an incident.
Employee personal injury claims may not immediately spell disaster for your business. Provided you have fulfilled all your legal obligations and maintained a proactive, transparent, and safety-first culture, you will be in a solid position to ensure proper safety standards are upheld. Though it’s always recommended to seek professional advice should insurance coverage prove inadequate.
