How can you protect employees and customers from the silent threat of carbon monoxide?

According to recent data from the Health and Safety Executive, each year around 14 people lose their lives due to carbon monoxide (CO) poisoning caused by poorly installed or maintained gas appliances and flues. Beyond these tragic incidents, countless more individuals grapple with severe health issues stemming from CO exposure. This silent, odourless and colourless gas poses a significant threat, particularly in commercial settings where the safety of employees and customers is paramount. This underscores the critical need for businesses to prioritise safety and compliance with relevant regulations.

In this article, we will explore the risks associated with carbon monoxide in commercial environments and provide practical mitigation strategies to help your business enhance its safety protocols and risk management practices.

Understanding the regulations

CO is a poisonous gas produced when gas and other fuels, such as coal, wood, or oil, do not burn properly. The main legislation governing gas safety is the Gas Safety (Installation and Use) Regulations 1998, which mandates:

• Qualified installation: All gas appliance installations must be carried out by a Gas Safe registered engineer.
• Regular maintenance: Gas appliances, flues, and installation pipework must be maintained in a safe condition, with checks recommended every 12 months.
• Professional servicing: Any work on gas installations, including maintenance, inspection, and servicing, must be performed by a Gas Safe registered engineer.

In addition to the Gas Safety Regulations, the Fire Safety Order and Management Regulations require risk assessments by competent persons, and the Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022 require landlords and businesses to ensure that alarms are installed and maintained in working order.

Understanding the risks

Failure to manage carbon monoxide risks in commercial settings can lead to severe consequences, impacting not only the health and safety of individuals but also the overall well-being of the business. Here are some of the critical repercussions:

• Criminal action: Potential charges of corporate or individual manslaughter and fines. Non-compliance with safety regulations can result in legal action, including criminal charges against both the company and responsible individuals. This can lead to significant fines, imprisonment and a permanent stain on the company's record
• Reputational damage: Negative publicity and loss of trust. Incidents involving CO poisoning can attract widespread media attention, leading to negative publicity. This can severely damage the company's reputation, erode customer trust and make it difficult to attract and retain both clients and employees
• Business interruption: Operational disruptions and financial losses. CO incidents can lead to temporary or permanent closures of business premises, causing significant operational disruptions. This can result in financial losses due to reduced productivity, lost sales and increased costs associated with remediation and legal proceedings

The long-term effects of reputational damage and legal consequences can have a lasting impact on your business's ability to operate effectively and competitively in the market. It is crucial for businesses to proactively manage carbon monoxide risks with a robust management system to protect both people and the organisation's future.

What does a robust management system look like?

Compliance with legislation relies on having a robust management system in place, ideally following the Plan, Do, Check, Act (PDCA model):

Plan

• Develop a robust management system, including policy statement committed to safety.
• Conduct risk assessments to identify and mitigate hazards. Evaluate current management systems against standards like ISO 45001 to identify areas for improvement.

Do

• Implement control measures, including safe systems of work and comprehensive training for line managers (IOSH Managing Safely) with the tools to manage risks effectively.
• Ensure training is effective, considering language barriers and individual capabilities. Train senior leaders (IOSH Leading Safely) on the importance of risk management and effective communication, and all employees about the dangers and importance of reporting any suspected leaks or exposures, including the symptoms of CO poisoning (such as headaches, dizziness, and nausea)

Check

• Conduct internal and external audits to ensure adherence to standards and assess the effectiveness of control measures.

Act

• Learn from reactive data (claims and accidents) and proactive data (inspections and audits).
• Adjust the management system as needed to improve effectiveness.

Building a safety culture

The successful implementation of any management system depends on fostering a safety culture by training leaders and managers on the importance of risk management and their roles in promoting a safe work environment. This requires leadership commitment, coupled with continuous engagement at all levels of the organisation.

Leaders must not only understand the technical aspects of CO safety but also embody a culture of safety in their daily actions and decisions. This involves setting clear expectations, providing adequate resources and ensuring that safety is a non-negotiable priority.

Continuous engagement means that safety is not just a one-time training session but an ongoing dialogue and practice. Regular training programmes, safety drills and open communication channels are essential to keep the workforce informed and vigilant.

By embedding safety into the organisational DNA, you can significantly reduce the risks associated with carbon monoxide and other hazards. This proactive approach not only protects lives but also enhances the overall resilience and sustainability of the organisation.

Are your business insurance policies adequate for CO risks?

There are insurance protections available for businesses regarding carbon monoxide injuries to employees or third parties (customers or visitors), or physical damage resulting from CO leaks. Each business must check its policies to ensure cover is in place.

• Liability insurance (public, pollution, employers) can provide cover against legal liability for damages and claimant’s costs and expenses in respect of injury or property damage sustained.
  • Legal and defence costs are often covered in the event of a prosecution under Corporate Manslaughter legislation or the Health and Safety at Work Act
  • Insurance policies will generally not pay for the fines or penalties imposed by a court upon either a negligent company or an individual
  • Compensation for court attendance is also regularly included
• Property insurance policies can provide cover for damage caused by CO leaks, for example, a fire caused by a leak, plus consequential interruption to the business.
  • Some policies might include administrative shutdown or denial of access extensions if closure of the business is ordered by a competent authority.
• Exclusions - Policies often include exclusions for non-compliance of any applicable legislation, rules or regulations, therefore insurers may refuse to provide cover in these cases or where legal advice may deem a case indefensible (unlikely to be won).
• Conditions - Both property and liability insurance policies often contain ‘reasonable precautions’ conditions, which may be applied if insurers consider that carbon monoxide leaks could have been prevented or detected, meaning insurers may refuse to grant cover.

Claims for carbon monoxide poisoning unfortunately often involve fatalities, so the costs can be significant, especially when dependents are involved. In such cases, claims frequently exceed six figures.

In addition to the financial and reputational impact of claims on a business, they can also affect the availability and terms of future insurance. Therefore, avoiding and mitigating claims is vital.

Businesses can implement preventative measures such as installing carbon monoxide alarms that meet British or European standards (BS Kitemark or EN 50291, or other global equivalents) to detect CO leaks early. Regular maintenance of appliances and proper ventilation, as previously mentioned, are also crucial. These measures provide insurers with assurance about the business's approach to risk and safety. Insurance policies are specific to the risk involved therefore should always be checked in each case.

For a smarter way to manage and mitigate carbon monoxide risks, get in touch with our specialists.