Thursday, July 03, 2008

Risk Assessments, Public Liability Insurance

Employers may not be covered by insurance in the event of a fire if they have failed to carry out a Risk Assessment and prepare a Fire Action Plan.

 

Employers fear that insurance companies may not pay out on a policy if the insured business has not complied with their legal duties, which includes the need to carry out a fire risk assessment.

 

Additionally, Companies and Directors face prosecution for breaches of safety law.

 

Parmeko PLC pleaded guilty at Leicester magistrates’ court on 13 June to a breach of s2(1) of the HSWA 1974 after they ignored the fire risk in using a flammable chemical

The company, which makes transformers for military and commercial applications, was fined £10,000 and ordered to pay £1910 costs.

An assembly operative, Naran Hirani, suffered serious burns when highly-flammable acetone caught fire.

The court was told that on 2 October 2007 the employee was using acetone to clean a small batch of transformers. He poured some of the solution into a small plastic jug, and then used a brush dipped in the acetone to clean the transformers.

A solder pot, running at up to 400ºC, was positioned about 3 feet from the acetone, and no regard was paid to fire risk arising from vapour released near the pot, which was a source of heat, flame or sparks.

HSE inspector Sidat said: “What the company should have done was carry out a risk assessment and invested in plunger cans, safety cans, and self-closing metal bins. What [workers] were doing was taking rags used for cleaning and putting them in bin liners. The receptacles they should have used should have been made of stainless steel or mild steel. The company had a folder full of safety data sheets, and it had started some COSHH assessments, but not for this work.”

Parmeko PLC told the court that it had no previous health and safety convictions and deeply regretted the incident.

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