Home > News Release: Not For Profits May Be At Risk In The Event Of
Not for Profits may be at risk in the event of OH&S breaches
21 July 2009
Australian Not for Profit organisations are overwhelmingly aware of their need to comply with Occupational Health and Safety (OH&S) laws, but many are unsure if their insurance coverage will protect them in the event of a breach of the OH&S Act.
That's according to a recent survey conducted by Enterprise Care of 92 Australian Not for Profit organisations.
The survey found that 99% of all respondents knew they had a legal obligation to address OH&S in their workplace. However, over half of all respondents did not know, or were unsure, if they had an insurance policy to cover OH&S fines or legal fees in the event of prosecution.
Of those surveyed with insurance cover, 74% did not know, or were unsure, of how effective their insurance coverage actually was.
Damien Smith, Managing Director of Enterprise Care, believes that OH&S is a critical governance responsibility. `At Enterprise Care, we recognise that complying with legislation preventing injury and illness at work is not only your organisation's ‘duty of care', but also good business practice` he said.
`However much we comply with the law though, it is imperative that you protect your business by having a comprehensive risk management plan, and that includes insurance coverage` Smith said.
The survey also found that 52% of respondents were unaware that their Board member's personal assets were at risk in the event of breaches to the OH&S Act.
`The OH&S responsibilities of a Director should be conveyed to all employees to ensure that everyone understands the significant legal and moral obligations of a Director's role` Smith said.
The survey found that while 99% of respondents knew they had to comply with OH&S legislation, only 67% of respondents had a formally appointed and trained OH&S representative, and only 40% had professional processes in place to regularly measure the OH&S risk their business is exposed to.
However, three quarters of respondents reported that their organisation kept up-to-date with work safe legislation in all operating areas.
Smith believes that having living and dynamic OH&S processes in place is an essential risk management practice.
`Directors, CEOs and senior staff need to be confident that their OH&S systems and practices are competent, robust and compliant with current legislation. It is not just one person's responsibility - it is every person's responsibility`.
For more information, or to arrange an interview with Damien Smith, call Enterprise Care on 1300 659 613 or 0418 325 781.
Enterprise Care is the premier governance advisory service for both the Not for Profit and corporate sectors in Australia.
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