FEATURE
WEATHERING THE STORM 7
Simon Bentley, Howden Care Division, offers advice on how to tackle risk management in the care sector to help care homes stay afloat at this challenging time.
The care sector is facing perhaps its toughest financial climate ever, with increasing pressure to slash costs at a time when salaries, the biggest cost of all, are rising to meet the National Living Wage. As a result the pressure is on to save costs in other areas.
Domiciliary care providers can help themselves and reduce costs by practising effective risk management, protecting their property, themselves, their staff and their service users. After all, behind every incident that leads to an insurance claim there may be business disruption, staff absence and loss of customers – all adding to financial pressure. A good insurance policy will cover your losses but, as with motor insurance, making lots of claims inevitably leads to higher premiums. For businesses with fewer claims, brokers can negotiate lower premiums and/or better cover, so helping to reduce your overheads.
Here’s a top ten risk management check list from insurance broker Howden:
1
Employers’ Liability – remove the risk of injury to staff.
Minimise the risk of accidents and staff injuries with thorough training. Encourage staff to recognise risks and report potential dangers and ‘near misses’ immediately.
2
Buildings and Contents – plan for an emergency.
In most towns there are ‘hot start’ offices equipped and ready for operation that usually support approximately 20 businesses - make
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sure you have a plan for where to go to after, say, a flood or a fire and ensure your policy will cover the costs.
3
Regulatory Issues - demonstrate compliance and safety of your
customers. Establish a system for evidencing compliance and safety of customers. Regulators now have more power and regular reviews of your processes and record keeping should be built into your business plan.
4
Business Interruption – IT back up. Prepare for business interruption
by managing your IT and records. Make regular back ups and be aware of cyber attacks. Ask your IT provider what measures are built in to protect your system, and make sure all staff are briefed on security. Brief them to change passwords regularly, particularly whenever there is a change of personnel.
5
Liability to Others – put common sense into practice
Manage risks with common sense whenever possible. Brief staff fully on medication and record keeping, and ensure field supervisors accompany carers on some visits for peace of mind.
6
Claims of Theft – reduce risk of claims against employees.
Implement robust procedures that require staff to inform management of any ‘gifts’ they receive from customers or personal information, such as PIN numbers, divulged. Remember that if there is loss or theft by employees, it is often the employer that is held responsible.
Employment Practices – get up to speed on employment law
Ensure contracts of employment are up to date and seek legal advice before taking disciplinary action against any employee to minimise the chances of a time consuming and expensive employment tribunal. Most domiciliary care insurance policies include a legal advisory service: do use it.
8
Vehicles – check care workers are covered.
Make sure staff are aware of the need to add business use cover to their motor insurance policy if they use their own cars. Check that they have it and keep a record of these checks.
9
Loaned Equipment – is it safe? Check when equipment lent to your
client, such as wheelchairs and hoists, were last inspected and flag up any concerns to the equipment owner, usually occupational health services. If you provide any equipment, ensure it is fit for purpose and that the client is insured to use it.
10
Goods in Transit – insure them. Ensure company equipment
taken by domiciliary care workers for use on visits is insured while it is in their vehicles.
Due diligence when it comes to risk management can significantly reduce the costs for domiciliary care providers, which will help them stay viable, and even profitable.
www.chis.net
www.primecareinsurance.net
www.howdengroup.com
www.tomorrowscare.co.uk
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