Company directors benefit from new health and safety guidance

New Zealand directors must actively participate in improving the health and safety performance of their organisations and in doing so, contribute to better health and safety outcomes for all New Zealanders.

Gallagher health and safety workplace expert Seb James says this call for better health and safety comes from the Institute of Directors and WorkSafe, who have updated their guidance on how directors and officers in a governance role can identify ways to improve their companies’ performance.

“These obligations have not generally been well understood, with many asking for better advice on ‘what good looks like,’” he says.

The refreshed Health and Safety Governance: A Good Practice Guide offers a principles-based approach that emphasises the importance of understanding and managing risks.

Produced in association with the Business Leaders Health and Safety Forum and the General Safety Forum, the guide integrates the legal obligations under the Health and Safety at Work Act 2015 into the wider framework of good governance in health and safety.

Proactive due diligence needed from directors  

Seb says the guide highlights that due diligence involves learning how work is performed and how risks are managed within the organisation, as well as considering other obligations like worker engagement and overlapping duties.

Failure to conform to the required health and safety standards can expose directors to prosecution and personal liability that can extend to fines and even imprisonment.  

How Gallagher can help

There are ways to mitigate the risks associated with company directors’ due diligence requirements. Due diligence is a personal obligation rather than an organisational one and these responsibilities are not closely defined in the Health and Safety at Work Act 2015.

Our brokers work with directors and officers to develop liability insurance solutions that cover unintentional breaches of New Zealand law and costs involved with legal action arising from carrying out management and fiduciary responsibilities.

In addition, Seb says Gallagher's health and safety experts can help businesses implement health and safety best practice.

“Our specialist expertise and practical guidance enables businesses to ensure their policies, procedures and processes are robust and meet regulatory standards, at the same time delivering efficiencies and contributing to safer workplaces.”