Liability for Security Contractors

Ive taken this one from my Misedio website - courtesy WorkCover NSW.

Its a good reminder why principal contractors engaging security (or any sub-contrator actually) MUST ensure their subbies have adequate insurance coverage. If your sub-contractor has ineffecitive cover (ie no coverage at all) the principal contactor will be up for the bill (or their insurer will, if its covered in their policy).

$407000 fine for subcontrator employee fatality
In the NSW Industrial Relations Commission in 2005 a head security contractor, a company it had engaged as a sub contractor, and a director were issued fines totalling $407,000. The Workcover CEO said, “This judgement is a landmark decision, which has clarified that the place of work definition in the Occupational Health and Safety Act 2000 applies equally to principal contractors and sub-contractors.”

Of note, principal contractors often rely on invoicing as a way of controlling their contactors ongoing insured status. They demand that sub-contractors must submit a copy of their current insurance policy prior to issuing payment of an invoice (as principals know,under the security of payments legislation, this is in fact law). However, this system does not adequately cover the situation of insurance expiring immediately AFTER an invoice has been paid. You could potentially have an uninsurred contractor working for you, and not have this identified until the next invoice is recieved for payment.

Don't say I didn't warn you......

Steve
www.misedio.com

Links
Misedio website where article can be found:
http://www.misedio.com/Resources/CaseWatch/tabid/305/Default.aspx

Workcover website where article can be found:
http://www.workcover.nsw.gov.au/MediaResources/MediaReleases/2005/security_firms_fined_after_fatal_robbery.htm

REAL contractor risk mangement

Ive just seen the system that e-VERIFILE has implemented for Union Pacific Railroad in the US. The system is called e-RAILSAFE and it is used to control how Union Pac deals with its contractors. What e-VERIFILE have done here is THE future of operational risk management, and closer examination of what they've done is very instructive.

e-RAILSAFE requires all prospective Union Pac contractors to log on and register at the e-RAILSAFE website. Here, contractors upload company and employee information. e-VERIFILE then undertake background checks on the company and its employees. Where unacceptable risk is identified, Union Pac, the contractor and the employee are notified - and given the oppertunity to 'appeal'. If accepted, the contractor is then required to remain compliant with Union Pac requirements while ever they remain contracted.

How valuable is this for Union Pacific! Weeding out the problem contractors BEFORE they become a problem significantly reduces the organisations "risk footprint".

The only limitation here is that e-RAILSAFE doesnt extend the verification capability beyond e-VERIFILE to other industry experts. This small proprietary element is actually very limiting. As good as e-RAILSAFE sounds, it would be better if the qualitative process could be extended outside of e-VERIFILE's internal capabilities.

This of course is what Misedio.com is all about - taking this concept and extending it, without limitation, throughout the entire construction industry. Good on e-VERIFILE though! They are way in front in terms of bringing real risk management to the market via the internet channel.

Steve
http://www.misedio.com/

Links
Article at SecuritySolutions.com: http://securitysolutions.com/access_control/security_screening_safety/
e-railsafe website: http://erailsafe.com/
e-verifile website: http://www.e-verifile.com/