When running a business that relies on lifting equipment, staying compliant with LOLER regulations is not just a legal necessity, it’s also essential to ensure insurance coverage remains valid. Although both insurance inspections and LOLER inspections focus on equipment safety, there are key differences you must understand to remain legally compliant. LOLER inspections are a legal requirement to assess the safety and functionality of lifting equipment, ensuring compliance with health and safety regulations. Whereas, insurance inspections primarily evaluate the risk for insurers, determining whether the equipment and its operation are covered under the company’s policy. In some cases, depending on the policy terms, an insurance report or inspection may incorporate a LOLER inspection for insured lifting equipment.
It’s important to understand the relationship and differences between LOLER inspections and insurance inspections, so we’re breaking down how proper maintenance and testing of your lifting equipment can influence premiums, liability, and overall safety.
What are LOLER inspections?
LOLER (Lifting Operations and Lifting Equipment Regulations) inspections are mandatory safety checks designed to ensure that all lifting equipment used in the workplace is safe, reliable, and fit for purpose. These inspections are a legal requirement and apply to any business using lifting equipment such as:
LOLER tests involve a ‘thorough examination’ and must be carried out by a competent person, typically every 6 or 12 months, depending on the type of equipment and how it’s used. During a LOLER test, the inspector will check for wear and tear, corrosion, or other damage that could affect the equipment’s safety.
Keeping up to date with your LOLER test and report frequencies helps prevent accidents, ensuring both the safety of employees and compliance with health and safety regulations. Failure to comply with LOLER can result in hefty fines and legal consequences and can inhibit the ability to get insurance coverage.
What is an insurance report?
An insurance report is a detailed document that outlines the condition of machinery and equipment, assessing any risks posed to a business or third parties. The purpose of an insurance report is to evaluate whether the equipment meets the standards required for coverage under a company’s insurance policy. There are a few types of insurance that can cover lifting equipment, the most common include:
- Crane Insurance: Covers businesses that own, lease, or hire lifting equipment, including cranes. Usually, this can also cover the operators and public liability insurance.
- Engineering Insurance: Covers lifts, boilers, and pressure plants. Some policies include inspection services to ensure that LOLER regulations are met. The policy can also be extended to cover damage to the lift after a breakdown.
- Machinery Insurance: Protects equipment against consequential damage.
An accurate and up-to-date insurance report helps to reduce premiums and ensures your business is protected in the event of a claim. Insurance reports typically focus on aspects that could impact claims, such as the likelihood of breakdowns, accidents, or operational risks.
Is LOLER an insurance inspection?
There is often an overlap between LOLER and Insurance Inspections, but they are different. In some cases, an insurance inspection may incorporate aspects of a LOLER inspection and insurers may conduct a LOLER inspection as part of their own inspection process if the equipment requires one. This helps insurers verify that the equipment meets safety standards and lowers the risk of equipment failure or accidents, which could lead to insurance claims.
Although there is sometimes an overlap, a LOLER inspection is not automatically an insurance inspection. The LOLER inspection ensures legal compliance, whereas the insurance inspection is focused on financial risk and policy coverage. The key thing to remember is that an insurance inspection may not guarantee your business is LOLER-compliant with legal regulations, and a LOLER inspection may not guarantee your insurance coverage will be valid.
If you’re unsure whether your business is legally compliant with LOLER, get in touch today and we can help.
What type of insurance does LOLER affect?
It’s important to note that while insurance inspections can complement LOLER requirements by identifying broader risks related to machinery usage and maintenance, they don’t replace legally required LOLER inspections. Some insurers will require proof of LOLER reports to validate your policy and ensure that your lifting equipment is being used in compliance with safety regulations.
In industries that rely heavily on lifting equipment – such as the construction industry, engineering, logistics, and manufacturing – LOLER compliance is required to keep valid insurance coverage. Here’s how LOLER can impact some insurance policies your business may have:
Public Liability Insurance:
This covers businesses in case their operations cause injury or damage to third parties, including members of the public or other businesses. In industries like construction and engineering, where heavy lifting equipment is used, accidents can occur if machinery fails. If an accident is caused by non-compliant lifting equipment, insurers may reject the claim if LOLER inspections were not conducted or equipment was found to be unsafe.
Employer’s Liability Insurance:
This insurance is a legal requirement for most UK businesses and covers the cost of compensation claims made by employees who are injured or become ill as a result of negligence at their work. In environments where lifting equipment is used, such as construction sites or warehouses, non-compliance with LOLER regulations can pose significant risks to employees. If an accident occurs due to poorly maintained or faulty equipment, your insurer may refuse to cover the claim if you haven’t conducted the necessary LOLER inspections.
Engineering Insurance:
This specifically covers machinery, equipment, and tools used in industries like construction and manufacturing. This type of insurance often requires regular LOLER inspections as part of its policy terms, especially for lifting equipment. Without proof of ongoing LOLER compliance, insurers may refuse to cover the costs of repairs or replacements for damaged equipment or deny claims related to equipment failure.
Business Interruption Insurance:
For businesses that depend on lifting operations, equipment downtime due to breakdowns or accidents can severely disrupt operations. This policy covers lost income during these periods, however, if the interruption is caused by faulty lifting equipment that hasn’t undergone regular LOLER inspections, your insurer may decline the claim or cancel your policy altogether.
Contract Works Insurance:
This covers ongoing contracted construction projects, including materials, tools, and machinery on-site. If an accident or equipment failure leads to damage or project delays during lifting operations, failure to comply with LOLER regulations could result in denied insurance claims under your contract works policy.
The positive impact of LOLER inspections and insurance is that LOLER compliance can lead to lower insurance premiums by demonstrating that a business is effectively managing the risks associated with lifting equipment. Regular LOLER inspections reduce the likelihood of accidents, equipment failures, and subsequent insurance claims, which can result in fewer and lower insurance costs and premiums. Insurers often offer better rates and more favourable policy terms to businesses that maintain a strong safety record and can prove they adhere to LOLER regulations.
Is Engineering Insurance a legal requirement?
No, Engineering Insurance is not legally required, but it is highly advisable for businesses using heavy machinery in sectors like construction and manufacturing. Engineering Insurance is a choice to have, and it’s designed to provide coverage for equipment damage, breakdowns, and third-party liabilities.
While engineering insurance itself isn’t mandated by law, certain aspects related to equipment and operations may require insurance coverage to comply with legal obligations. For example, employers are legally required to have employer’s liability insurance to cover employee injuries and engineering insurance is a proactive measure to safeguard against specific risks associated with machinery and equipment, in line with your legal obligation to protect employees.
How to stay legally compliant with LOLER
Below are some steps to remember in order to maintain compliance with LOLER. You can also read our guide on LOLER Inspections!
- Identify Lifting Equipment: Determine which of your lifting equipment and machinery, including cranes, hoists, forklifts, and lifts, falls under LOLER regulations. We can help you with this – just give us a call.
- Choose a Reputable Inspection Service: Select a professional, accredited LOLER inspection service with the expertise and experience to conduct accurate thorough examinations. This service should be able to provide you with accurate and comprehensive LOLER reports, reporting storage, and ongoing guidance.
- Establish a Thorough Examination Schedule: Develop a schedule for inspections based on the type of equipment and its usage. Regular inspections are typically required every 6 or 12 months, but the frequency may vary. At Bramley Engineering, we offer a scheduling and reminder service to help you set up and manage this LOLER test frequencies.
- Conduct Thorough Examinations: Ensure that each piece of lifting equipment undergoes a thorough examination by a competent person. It’s best to use an inspection service like Bramley Engineering to conduct your inspections to ensure impartiality and compliance.
- Receive the LOLER Report: After each thorough examination, you’ll receive a LOLER report detailing the equipment’s condition and any issues found. LOLER reports are typically issued every 6 to 12 months in line with inspections, depending on equipment type and usage. Keep these records for a minimum of 2 years from the examination date, ensuring they are stored securely and are easily accessible for audits or insurance purposes. We offer a secure online database to easily store and access your reports. To find out more, get in touch.
- Regularly Review and Update Procedures: Continuously review and update your operational, maintenance and LOLER compliance procedures. Ensure that your inspection and maintenance schedules are followed, and make any necessary adjustments based on the LOLER reports and the evolving regulations.
- Stay Proactive: Keep track of inspection dates and schedule follow-up examinations as needed. Engage with your inspection service for reminders and support to ensure that all equipment remains compliant with LOLER regulations. Choose Bramley Engineering’s LOLER inspection services and receive handy notifications to keep you on track.
By following these steps and working with a professional inspection service, you can maintain compliance with LOLER with ease, ensuring the safety of your lifting equipment, and protecting your business from potential legal and financial risks.
Request a free LOLER inspection quote today
Take the stress and management out of LOLER inspections with our all-encompassing LOLER Inspection Service. At Bramley Engineering, our expert team provides detailed LOLER tests, thoroughly examining your equipment and offering tailored advice to ensure your business meets all safety standards. We are committed to delivering precise, reliable, and timely inspections that align with your schedule and business needs.
Trust us to keep your workplace secure and compliant. Request a free LOLER inspection quote today, or call us at 01525 375 225 for more information.
