How a robust health and safety culture can strengthen your insurance coverage

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 20,000 employers’ liability claims being made in 2023 alone in Ireland¹, 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 Tony Walsh (Head of Retail, Commercial Insurance) and Dr. Paul Cummins (CEO of SeaChange, an NFP company) 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.

“A strong risk prevention not only protects employees but also reduces claims, lowers premiums, and enhances financial stability” says Cummins. “Compliance with safety regulations minimises liability, while a proactive approach to workplace safety leads to fewer incidents, improved employee well-being, and long-term cost savings. By leveraging data and working closely with insurers, businesses can continuously refine their safety strategies, creating a safer, more resilient organisation."

Tony Walsh echoes this: “In my experience as a broker for the last 20+ years, I have found that businesses with robust health and safety management are better equipped to prevent risks and safeguard their financial stability. By ensuring health and safety measures are up to date, businesses can effectively reduce workplace accidents and incidents. As a result, this not only helps protect employees but also lowers insurance costs, as fewer claims are likely to occur.”

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.

“In my experience, some businesses view it as an added cost on top of their insurance premium” says Walsh. “However, by educating customers, they can begin to see it as an investment that is directly linked to reducing their claims experience, ultimately leading to lower premiums.”

Cummins examines the issue further: “Many businesses still hold misconceptions that hinder them from fully leveraging the benefits of a strong health and safety strategy. From assuming insurance covers everything to underestimating the impact of safety improvements on premiums, these misunderstandings can lead to higher costs and unnecessary risks. A proactive safety culture not only reduces incidents but also strengthens risk profiles, lowers premiums, and ensures businesses are properly protected, regardless of their industry."

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.

“By establishing a strong health and safety culture and policy, a business can effectively assess areas of concern, such as recurring injury types like trips and slips, which often lead to claims” says Walsh. “With a heightened awareness of potential risks, the business can take proactive steps to minimise the likelihood of recurrence. This approach not only helps reduce claims but can also result in lower excesses, access to new markets, and a reduction in insurance premiums.”

“A strong health and safety culture isn’t just about compliance - it’s a financial game-changer” Cummins emphasises. “Businesses with fewer workplace incidents benefit from lower insurance premiums, reduced workers’ compensation costs, and better policy terms. Proactively managing risks not only strengthens liability protection but also enhances business continuity, reputation, and insurability. By investing in workplace safety, companies can drive long-term cost savings.”

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.

“Continuing compliance with the Safety, Health and Welfare at Work Act 2005 is essential” says Cummins. “Digital transformation is revolutionising risk assessment, and insurers are increasingly factoring ESG considerations into their pricing and coverage decisions. Companies that invest in both safety and social responsibility are not only meeting regulatory requirements but are also gaining a competitive advantage in the market.”

Walsh adds – “In Ireland, initiatives like Safe-T-Cert and the ISO 45001 certification are increasingly helping businesses improve their safety standards through awareness strategies, training and yearly auditing. As market consolidation increases, insurers are focusing on risk reduction, encouraging businesses to invest in health and safety practices. This investment not only reduces risk but also opens up opportunities for more competitive pricing and broader market options.”

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.