Five rules to create a health and safety budget that will protect your company against unexpected expenses

Ashley Churchyard, Fsp Business, 08 Dec. 2014

Tags: health and safety budget, health and safety, safety budget, health and safety expenses

You have to budget for the running of every part of your business. After all, you need to know exactly what expenses you’ll have, so you can set aside the money to cover them.

This applies to health and safety too. There are a lot of expenses involved in implementing health and safety. If you don’t budget for them, you might get a nasty surprise when you suddenly have to, for example, cough up R50 000 on health and safety requirements.

Creating a health and safety budget will help you manage your health and safety expenses so this doesn’t happen to your company.

But to create one that really protects your company’s finances, follow these five rules…

*********** Hot off the press  ************
How to prepare your Health and Safety Budget
We’ll reveal how you can do it in three easy steps.

Follow these fives rules when you create your health and safety budget

Rule 1: Be aware of your legal health and safety requirements
If these change, you may need to spend money to update your health and safety programme. If you sign up with the Health and Safety Bulliten, we'll keep you up-to-date about any legal changes. 
Also, do your annual health and safety audit before you create your budget. This will show you if there are any legal requirements you haven’t put in place. This way you can include them in your budget now. 

Not sure how to do a health and safety audits? Then check out the Audit Smart Software.
Rule 2: Consider every aspect of all your health and safety requirements
For example, you must budget for fire safety measures. But this doesn’t just include getting a fire alarm and extinguishers. It also includes:
- Safety signs;
- A first aid kit;
- First aid training;
- Training your employees on your emergency procedures;
- Smoke detectors;
- Printing and distributing your emergency procedures manual; and
- Training all the other employees who have emergency response duties.
For a full list of examples you should budget for when it comes to fire safety, download the Health and Safety Budget here
If you forget to include any of these requirements in your budget, it could lead to a nasty surprise later on. 
Rule 3: Budget an extra amount for unexpected problems
Let’s say, a DoL inspector comes to pay your company a visit. He tells you the PPE your employees have is too old and you must replace it. If you hadn’t planned on buying new PPE for a year or two, that extra money you set aside can help you cover this expense. 
*********** Reader’s choice  ***************
Do you want to be fined, jailed or have a criminal record for life?
If an accident occurs in your workplace, and the person dies, you could be charged with culpable homicide, charged penalties of R100 000 or 2 years in jail! The CEO or Owner of a company is personally accountable for health and safety at work. 
Click here for the three things you must prove to establish your innocence.

Rule 4: Consult your health and safety representative before your draw up your budget

Your health and safety rep may know of other problems you need to fix in your health and safety programme. 
Go around your workplace with your health and safety rep and discuss exactly what you need to fix or put in place. This will help you budget for these expenses.
Rule 5: Don’t forget about the cost or maintenance, updates and renewals
Machinery gets old, training certificates expire and safety procedures become outdated.
You have to constantly assess if all the elements of your health and safety programme function as they should. If they don’t, you have to pay to fix them. That costs money so you have to factor this into your budget.
These five rules will help you create an effective health and safety budget that will protect your company against unexpected expenses. 
For the legal requirements you need to factor into your health and safety budget, check out the Health and Safety Budget. It contains all 21 legal requirements your health and safety budget must cover.  

Related articles:




RSS Facebook Share the experience
Health and Safety Club
  • COID
  • Contractors
  • Emergencies
  • Fire Safety
  • First Aid
  • Health and Safety Audit
  • Health and Safety Inspection
  • Health and Safety Representatives
  • Health and Safety Training
  • Induction
  • OHSA
  • PPE
  • Risk Assessment
Video Archive Video club
Your library of Free eReports
View full library
FREE Download: 10 Health & Safety appointment letters!

Download 10 Health & Safety appointment letters you legally need in your safety file!