What does Safety Audit comprise of?
Safety audit usually is followed as per the safety rules and targets set by the organization. An audit means the following of established, set up and targeted procedures. Whatever has been defined under safety rules has to be followed. This may include but not limited to (this may vary from company to company): -
• Storage and handling of chemicals
• Safety while working at height
• Hazards due to machinery
• Road safety
• Electrical safety
• Working environment safety
• Safety with respect to access levels
• Emergency planning
• Fire safety
OSHA (Occupational Health and Safety Administration) is the most respected safety organization in the world. Generally rules set by OSHA are tried to be followed during OHSAS (Occupational Health and Safety Assessment System) 18001 audits and internal safety audits.
Why Risk Engineers are concerned about Safety Audits?
Risk engineers while on inspection are always concerned about safety audits. Safety audits ensure that the safety matters are taken care by the management and the corrective and preventive measures ensure that everyone is concerned about loss mitigation in the premises.
While some organizations don’t follow internal audit system but only external audits, some rigorously follow both external and internal audits. The reports help the risk engineer visualize the real scenario of how the risk is taken care in thepremises.
How may Safety Audits influence Underwriting Decisions?
Some insurance companies allow discounts to the companies that are certified from external agencies, however not all the certifications are safety certifications. For example OHSAS 18001 is a certification related to occupation health and safety but ISO 9001 is something related to quality. The purpose behind allowing discounts is an assumption that the systems have been defined.
Here’s how safety audit system in an organization is important for the underwriters: -
• Understanding that there are defined safety systems and procedures
• Existing hazards and risks are identified
• Risk management steps are taken
• Emergency response procedures are reviewed and updated
• Corrective and preventive actions are taken
• Management is conscious about safety
While planning and establishing a system are important, it is also important to maintain the system. Safety audit not only ensures that the system is maintained but also ensures that the standards go stringent enough to restrict the accidents from occurring in the concerned premises.