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Getting health and safety right in retail, leisure and hospitality: Core principles to manage risk

By Teresa Long | February 26, 2025

Health and safety is a top risk in the retail and leisure sectors. We offer an actionable overview of the key risks and core steps to help your organisation better protect people, profits and patrons.
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With high public interaction, diverse employee roles and dynamic operating environments, health and safety is a high priority for businesses in the leisure and hospitality and retail sectors.

Non-compliance with health and safety regulations can have significant financial, reputational and human costs, making it a top risk for senior leadership. This article examines the nature of health and safety risks for retail, leisure and hospitality and offers the core practical steps for improving and addressing these challenges.

Why is health and safety a top risk for retail, leisure and hospitality?

Beyond financial costs, health and safety lapses can severely harm your reputation, as we’ve seen from high-profile cases involving issues such as allergen miscommunication and workplace accidents.

Effective health and safety management also directly impacts employee morale and productivity, with our research showing high wellbeing cultures foster eight times more engaged employees compared to low-wellbeing cultures.

Poor health and safety practices can also amplify other organisational risks, including cybersecurity vulnerabilities, regulatory breaches and legal liabilities. According to our latest Directors’ and Officers’ (D&O) Survey, 84% of respondents identified health and safety as ‘very important’ or ‘extremely important,’ recognising its importance for financial resilience, operational continuity and public confidence.

Other significant risks identified in the survey include potential breaches of human rights, which 60% of respondents deemed important. While employment claims were highlighted by 50% of directors surveyed. These findings suggest leaders are prioritising robust health and safety frameworks, recognising the direct impact these issues have on operational continuity, regulatory compliance and public perception.

However, a 2024 survey indicated 70% of businesses are unprepared for Health and Safety Executive inspections due to outdated systems, suggesting some retail, leisure and hospitality organisations need to review their data management and safety protocols.

Existing regulatory landscape for health and safety

In the UK, health, safety and hygiene in the retail, leisure and hospitality sectors are governed by a blend of regulatory standards, industry best practices and legal obligations aimed at protecting employees and customers. Central to this framework is the Health and Safety at Work Act 1974, which mandates that businesses assess risks, implement measures to mitigate hazards and maintain a safe working environment.

Complementing this are rigorous hygiene regulations, such as the Food Safety Act 1990 and Food Hygiene (England) Regulations 2006, which enforce stringent food preparation and storage standards, alongside personal hygiene protocols for staff. Fire safety, regulated under the Fire Safety Order 2005, requires businesses to implement measures like emergency exits, regular fire drills and equipment checks.

Recent updates to the UK's health and safety regulations, include reforms to the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) aimed at improving incident reporting and ensuring businesses remain compliant.

Together, these regulations create a robust framework aimed at ensuring operations are safe, hygienic and compliant with legal expectations.

Steps to strengthen health and safety risk management for retail, leisure and hospitality

An effective health and safety risk management strategy isn’t just a regulatory necessity — it’s a competitive advantage. By implementing targeted strategies, retail, leisure and hospitality organisations can protect their workforce, enhance customer trust and align with insurance requirements to mitigate financial risks.

Below are five actionable steps to help your organisation build a robust health and safety framework that drives compliance, reduces liability and strengthens operational resilience.

  1. 01

    Ensure you have comprehensive and relevant documentation

    • Make sure your health and safety policies and risk assessments are regularly reviewed and updated to reflect current operations and evolving risks. Using integrated risk management systems can help align your health and safety controls with broader organisational strategies.
    • Organisations expanding their footprint or facilities through introducing new attractions or premises should ensure your documentation reflects site-specific hazards and operational realities. Outdated or generic policies can not only expose your business to regulatory scrutiny but may also result in insufficient insurance coverage, leaving you vulnerable to financial liabilities. Regularly updating your policies and risk assessments can also help your organisation maintain favourable insurance terms by demonstrating proactive risk management.
  2. 02

    Demonstrate compliance through record-keeping

    • Clear documentation is critical for demonstrating compliance and ensuring defensibility in audits, investigations, or insurance claims. Maintaining thorough records — such as daily safety logs, allergen communication protocols and attendance at toolbox talks — provides the evidence you’re following safety protocols.
    • Digital tools can help you streamline documentation and provide robust data for demonstrating compliance to regulators and insurers, potentially reducing premium costs by showcasing a strong safety culture and adherence to best practices.
  3. 03

    Tailor risk assessments to specific sites

    • Risk assessments should address site-specific hazards, including seasonal risks at outdoor attractions. Neglecting to tailor your assessments can result in incidents that lead to costly insurance claims or disputes over coverage.
    • Tailored risk assessments can help in aligning safety practices with operational realities while ensuring businesses meet insurance underwriting requirements.
  4. 04

    Foster a safety-first culture

    • Create a strong safety culture through a visible leadership commitment, from prioritising health and safety in board meetings to regular engagement with employees. This cultural shift not only reduces incidents but can also lead to lower insurance premiums as insurers recognise the reduced likelihood of claims where you can demonstrate a strong safety-first culture.
    • Role-specific training programs and benchmarking insights can help your organisation develop and sustain safety practices that align with both regulatory requirements and insurers’ expectations.
  5. 05

    Leverage technology for compliance and monitoring

    • Technology can play a critical role in modern health and safety governance, particularly in reducing the risks that drive insurance claims. Internet of things devices, such as those that monitor environmental conditions like air quality, while centralised platforms can support incident tracking and compliance monitoring.
    • Use your data to identify patterns, mitigate risks and demonstrate safety excellence to insurers. This won’t only improve safety outcomes but also help in premium negotiations or claims resolution.

To discover a smarter way to manage health and safety risks, get in touch with our retail, leisure and hospitality industry specialists.

Author


Industry Leader – Retail, Leisure & Hospitality for GB Risk & Broking

Contact


Tom Bedford
Practice Leader, Retail, Leisure & Hospitality

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