Working with chemicals presents inherent risks to be mindful of, not only for the safety of your employees but also to ensure that your business has the appropriate insurance cover. Insurers often have specific requirements related to the storage and handling of chemicals, and failing to meet these requirements can result in claim repudiation. Here, Karen Rimmer: Head of Distribution at PSG Insure advises on the essential considerations and steps that businesses (and individuals) need to take to stay compliant, safe, and fully covered by their insurance policies.

Compliance with legislation

The cornerstone of ensuring insurance cover for businesses working with chemicals is compliance with relevant legislation. Insurers consider applicable laws when assessing claims, making it crucial for businesses to understand and adhere to the regulations that govern their operations. Full disclosure of all relevant business information, including the chemicals used on-site, is essential. As Rimmer emphasises, “Failing to provide accurate and comprehensive information to insurers can have significant financial and operational consequences, underscoring the importance of working closely with an insurance adviser to meet compliance requirements.”

Documentation and licensing

Businesses must ensure that all necessary licenses, permits, and compliance documentation stays up to date, readily available to enable a smooth claims process. She further advises that maintaining accurate records that demonstrate compliance with legislation, regulations and safety standards is paramount. Businesses should also conduct regular fire safety checks and inspections to validate their adherence to safety protocols and requirements.

Suitable grounds and storage solutions

The building where chemicals are stored must be equipped to handle such materials. Factors such as occupancy classification, building construction, ventilation, and fire protection systems play a crucial role in determining the suitability of the premises for storing chemicals. Rimmer asserts that businesses must adhere to stacking compliance considerations, ensure proper storage locations, and implement fire detection and suppression systems tailored to the types of chemicals used on-site.

Spill response and safety measures

“Contingency plans need to be in place to address chemical spills and emergencies effectively. Employing certified and competent forklift drivers, access to spill response experts and providing appropriate safety equipment and emergency facilities for staff are vital components of proactive risk management. Implementing safety measures such as fire walls, separate storage areas, and proper ventilation systems further enhance the overall safety of chemical handling operations,” says Rimmer. 

Home chemical safety

Beyond the workplace, households also contain various flammable chemicals that pose fire hazards if not handled or stored properly. Common household products such as non-stick cooking spray, insect repellent, spray deodorants, furniture polish, and pool chemicals can all present risks if not used with caution. By understanding the flammability of these products and following safety guidelines, such as not using these products near an open flame or storing them close to other flammable objects, one can mitigate the risk of accidents and potential fire damage at home. 

According to Rimmer, another common item one might store in the garage is leftover paint, which presents risks to keep in mind. Paint products typically contain flammable components such as solvents and chemicals. If these flammable materials are exposed to heat sources or sparks in the garage, there is a risk of fire. Improper storage or handling of paint cans can increase the likelihood of accidental fires, especially if they are stored near other flammable materials or sources of ignition. It’s also important to ensure that paint is properly sealed to avoid accidental spills, as well as preventing children or pets from ingesting paint.

Store paint cans and other chemicals in a cool, dry, and well-ventilated area away from heat sources, direct sunlight, or flames.

Consult with an insurance adviser

By engaging with insurance advisers to assess specific needs and risks and regularly reviewing and updating their insurance policies, policyholders can ensure they have adequate coverage tailored to their operations or household. 

Proactively maintaining compliance with safety regulations, implementing proper storage and handling practices, and staying informed about insurance requirements are essential steps for businesses and individuals working with chemicals. As Rimmer concludes, “By prioritising safety, adhering to best practices, and engaging with insurance professionals, businesses and homeowners can mitigate risks, prevent accidents, and ensure they are fully covered in the event of a fire-related incident. Remember, safety and compliance go hand in hand with comprehensive insurance coverage to protect your business, employees, customers, property and your loved ones.”