Staying compliant with health and safety regulations is a legal requirement for businesses with five or more employees, but it’s also a vital part of protecting your people, your reputation and your financial resilience. Breaches may result in significant penalties - minor issues could lead to fines of £10,000 to £100,000, while serious breaches may result in costs reaching into the millions. This sort of punishment cold not just threaten the legacy you have worked so hard to build, but the future of the business itself.
But here’s the thing: health and safety doesn’t exist in isolation. It’s deeply connected to your commercial insurance. The strength of your safety practices can influence your insurance premiums, the scope of your coverage, and even your ability to make a successful claim. That’s why we advocate for an integrated approach, where health and safety and insurance work together to protect your people, your profits, and your legacy.
5 things to make sure you get right in 2026
We know that committing to best-practice health and safety over the long term is easier said than done. This is especially true for small-to-medium businesses that may not have the necessary capacity (time and resources) or capability (access to expertise). There’s also a common misconception that health and safety only applies to certain sectors, such as manufacturing and construction. While risks may be more varied in those industries, every business faces risks that need to be managed.
With that in mind, here are five core considerations to have on your radar for 2026 that show how health and safety and insurance go hand in hand.
1. Know your responsibilities
Every employer has a legal duty to protect the health, safety and welfare of their employees and anyone affected by their work. For family-run businesses, where roles often overlap and resources may be limited, understanding these responsibilities is crucial. The Health and Safety at Work etc. Act 1974 outlines the requirements for providing a safe workplace, safe systems of work, and clear policies.
When we walk into a business for the first time, this is the first thing we help them understand. Without a fundamental level of knowledge of what is required of your business, the rest of the health and safety building blocks have no solid foundation to grow from.
Why it matters for insurance: Insurers may assess your risk profile based on how well you manage safety. A clear policy, defined roles and ongoing legal awareness can demonstrate that you’re actively reducing risk - something insurers may reward.
Actionable steps:
- Write a health and safety policy that reflects your business activities and review it annually
- Assign specific safety roles (e.g. fire warden, first aider) and ensure responsibilities are understood
- Subscribe to a reliable health and safety update service to stay informed about legal changes
2. Know where you’re at in terms of compliance
Before making improvements, it’s essential to understand your current level of compliance. This is particularly important for owner- and family-run businesses, where informal processes may have developed over time. Knowing where you stand helps you prioritise actions and demonstrate a proactive approach to regulators, insurers and employees.
When conducting our full health and safety audits and delivering the resulting action plans, we often uncover areas that clients either weren’t aware of or hadn’t identified as threats to compliance. It’s easy to see how breaches can be innocently overlooked.
Why it matters for insurance: Sharing your audit results and risk assessments with your insurer can help them understand your risk profile and tailor your coverage accordingly.
Actionable steps:
- Schedule a formal health and safety audit at least once a year
- Compare your current practices against HSE guidance, focusing on risk assessments and training
- Keep a compliance log to track improvements and show evidence of ongoing commitment
3. Incorporate health and safety into your long-term strategy
Health and safety should be embedded into your business strategy, not treated as an afterthought. As your business grows or changes - whether through new equipment, premises or services - new risks may emerge. Planning ahead can help you manage these risks effectively and ensure safety remains a core part of your operations.
These ongoing commitments are something we regularly support our clients with, from annual audits and policy updates to multiple days a month of dedicated consultancy. Health and safety isn’t something you can tick off and forget about - it requires continuous time and attention to get right.
Why it matters for insurance: Insurers may want to see that you’re thinking ahead. If you’re planning changes, they may need to be reflected in your policy. Proactive planning could help avoid gaps in coverage.
Actionable steps:
- Include health and safety considerations in all business planning and decision-making
- Maintain a risk register that’s updated whenever changes occur
- Consult with a health and safety advisor when introducing new equipment or processes
4. Review your commercial insurance
If your health and safety practices are lacking, it could lead to higher premiums or even invalidate your cover. Reviewing your insurance alongside your health and safety procedures can help ensure you’re not exposed to unnecessary risk from any angle.
Many clients that benefit from our health and safety solutions also work with our colleagues in NFP’s commercial insurance division. We find that these two solutions complement each other well, and our clients with family-owned businesses especially value this integrated approach.
Why it matters for safety: Insurance reviews may highlight areas where safety improvements are needed. Working with both your safety consultant and insurance broker can help ensure full coverage and peace of mind.
Actionable steps:
- Share your latest health and safety audit and risk assessments with your insurer
- Ask your broker for feedback on how your safety practices affect your cover
- Ensure your insurance policy accurately reflects your business activities and associated risks
5. Understand what your people understand
Even the best policies and procedures can be ineffective if your people don’t understand or know how to apply them. For family-run businesses, where roles may be fluid and training informal, ensuring everyone is properly trained is essential.
There are plenty of training options out there on a huge variety of topics, from manual handling to mental health awareness. We recommend doing your research and bearing in mind the content and delivery style that would best suit the needs of your people and business. A CPD accreditation also acts as a quality guarantee for certain courses and providers, so we recommend also prioritising this.
Why it matters for insurance: Well-trained staff may reduce the likelihood of incidents, which could lower your premiums and improve your claims history.
Actionable steps:
- Identify the specific training needs for each role
- Use accredited online courses to deliver consistent, flexible training
- Keep a training log and schedule regular refreshers to maintain competence
Final thoughts
At a time when costs are rising and your time is being stretched more than ever, health and safety can feel like an afterthought. We get it - and we promise we don’t take it personally!
We always speak to businesses that feel they have to choose between excellent health and safety practices and business growth, unaware that both may be achievable with the right support from the right partner.