When it comes to protecting your business, health & safety and insurance are two sides of the same coin. Yet, many businesses see them as separate concerns - one about compliance, the other about financial protection.
In reality, they work hand in hand to create a safer workplace, reduce risks, and build a culture of accountability, reducing the need to depend on an insurance payout in the event of a workplace injury claim. With over 44,000 employers’ liability claims made in 2024 alone1, taking a proactive approach can help your business save money in the long term by preventing unnecessary claims and keeping premiums stable.
In this article, we sat down with Graham Meacher (Sales Director, Commercial Insurance) and Jon Williams (Director of Health and Safety) for their industry perspectives on how your health & safety and insurance solutions can work in tandem to better manage your business risks, protect your people, and ensure financial stability.
How do health & safety and insurance complement each other to protect businesses?
The nature of health & safety and insurance is largely interlinked, providing a comprehensive safety net for businesses.
“By creating a comprehensive risk management strategy, you protect both your people and your business” says Graham Meacher. “When businesses prioritise workplace health and safety, they’re also working towards reducing any claims and keeping their insurance costs under control. A strong safety culture can even unlock incentives, from insurers such as discounts on premiums, broader coverage, lower deductibles, and more, rewarding proactive risk management.”
Jon Williams echoes this: “Insurers are regularly paying out 5 or 6-figure sums for employer’s liability claims resulting from workplace accidents2” he says. “With virtually all accidents being preventable, it’s vital to have a robust risk management culture in place. A good relationship between client and broker/insurer will ensure risks can be well managed and increase transparency and trust between client and insurer.”
What are some myths about health & safety and insurance?
A common misconception among some businesses is that having insurance alone is enough to mitigate risks, making it unnecessary to invest heavily in health and safety measures. In fact, poor health and safety practices can lead to increased workplace accidents, resulting in higher insurance premiums, potential legal liabilities, and reputational damage.
“Some clients believe that it doesn’t matter what measures are in place - insurers will pay out anyway. However, these are often the businesses that lack any risk management measures,” says Williams. “In my experience, insurers want to defend claims, but they can only do so if robust documentation and processes are in place.”
Meacher examines the issue further: “Businesses often underestimate how insurers assess risk. Insurers frequently consider a company’s health and safety record when determining premiums. Frequent claims or unsafe practices can lead to higher costs or even difficulty obtaining coverage. Conversely, strong health and safety policies can reduce claims, lower your premiums, and improve overall business sustainability.”
How can smarter health & safety practices potentially lower your insurance costs?
A strong health and safety strategy can have a significant impact on insurance costs, risk management, and securing better policy terms.
“Insurance providers evaluate a company’s risk profile when underwriting policies. A solid health and safety strategy and proven track record show proactive risk management, making businesses more attractive to insurers and leading to better policy terms, such as lower deductibles and broader coverage,” says Meacher.
Equally, Williams shares the same sentiment – “Effective health and safety and risk management arrangements will always be an attractive starting point for a broker looking to place business, and the more options the broker has, the more robust and competitive options will be available,” he says. “On the flip side, a business with a poor accident and claim record, along with a poor risk management approach, will lead insurers to not even provide a quote, or at best, a heavily loaded quote, considering their history.”
What are some key industry trends and regulations shaping the health & safety and insurance landscape?
As workplace risks evolve, so too do the regulations and industry trends shaping health & safety and insurance. From emerging technologies to a greater focus on occupational health and mental well-being, businesses must stay ahead of these changes to manage risks effectively and maintain strong insurer relationships.
“Risk surveyors are always picking up on new trends and technology that may have slipped through the net regarding risk management,” says Williams. “A typical example of this is controlling the risks from electric vehicle chargers, which are becoming increasingly more common in workplaces. Additionally, the UK government is increasingly focusing on issues surrounding occupational health3, as claims from ill health are on the rise - an area often overlooked by employers.”
Meacher highlights, “Workplace safety regulations are continuing to evolve, with increasing focus on mental health, ergonomics, and global standards like ISO 45001. Rising workers’ compensation and liability insurance costs mean insurers now assess premiums based on a company’s safety record, rewarding businesses that invest in proactive risk management and technology such as AI-driven analytics and wearable safety devices. It’s worth businesses investing proactively to stay on top of the latest risk trends.”
How we can help
NFP understands that balancing health & safety with commercial insurance is crucial to protecting your business, employees, and financial future. Our expertise allows us to source comprehensive insurance solutions while also providing tailored health & safety support to help you proactively manage risks. By working with us, we can help strengthen your risk management strategy, reduce claims, and secure more competitive insurance terms. Plus, as your broker, we take care of all your commercial insurance needs - so you can focus on running your business with confidence, knowing you're fully protected.
Graham Meacher, Sales Director - Commercial Insurance
Throughout his 30-year career, Graham has helped businesses of all sizes navigate complex risk landscapes, providing tailored insurance solutions that protect their assets and drive growth. With a deep understanding of the evolving insurance market, his expertise spans a wide range of industries, ensuring businesses receive comprehensive coverage suited to their unique needs.
Jonathan Williams CMIOSH, Managing Director - Health and Safety
For over 25 years, Jon has been supporting businesses on health and safety and employment law matters through offering bespoke, sensible, practical and cost effective risk management solutions. NFP’s health and safety division is on hand to provide a holistic service that helps safeguard your people’s safety at work, as well as their long-term physical and mental health.