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COMPLIANCE & INSURANCE - WHAT FABRICATORS NEED TO KNOW
Why Compliance Matters for Metal Fabrication Insurance
Metal fabrication is a high-risk trade: hot works, heavy materials, lifting operations, machinery, working at height, noise and fume exposure, and complex interfaces with other contractors on-site. Strong compliance is not just about avoiding enforcement action - it also reduces the frequency and severity of claims.
Insurers increasingly expect robust risk management evidence: training records, inspection regimes, maintenance schedules, hot works controls, RAMS, and clear CDM responsibilities. This guide explains the key compliance themes and how insurance typically responds (and where it won’t).
Important: This is general guidance, not legal advice. Requirements vary by work type and site. Always follow applicable legislation, guidance, and competent safety advice for your operations.
What This Compliance Guide Covers
This page focuses on the practical compliance areas that most commonly affect metal fabrication risk - and therefore affect underwriting, premiums, and claims outcomes:
- HSE duties and “reasonably practicable” controls
- CDM (Construction Design and Management) responsibilities for supply-and-install work
- RAMS (Risk Assessments & Method Statements), permits and toolbox talks
- Hot works controls and fire prevention
- LOLER / lifting operations, PUWER and machinery guarding
- Working at height and access equipment controls
- COSHH, welding fume, PPE and health surveillance
- Incident reporting, record keeping, and claims defensibility
- How insurance fits (EL/PL/Products/PI/Contract Works) - and key exclusions
1) HSE Compliance Fundamentals for Fabricators
In practical terms, HSE compliance for metal fabrication is about identifying hazards, implementing controls, training people to follow them, and keeping evidence that you did so. When claims happen, insurers (and solicitors) often look for one thing: what was your system of work, and can you prove it was followed?
Most enforcement and claim drivers in fabrication fall into a few predictable categories: unsafe hot works, poor lifting control, inadequate guarding or maintenance, poor working-at-height controls, and occupational health issues (fumes, noise, vibration).
Core “Must-Have” HSE Evidence
- Signed RAMS and site-specific method statements
- Inductions and toolbox talk records
- Training and competence records (welding, MEWP, slinging/signalling, forklift, abrasive wheels, etc.)
- Equipment inspection and maintenance logs (including extraction, guards, emergency stops)
- Hot works permit process and fire watch arrangements where needed
- LOLER inspections / thorough examinations for lifting equipment (where applicable)
- PPE issue records and enforcement (eye/face protection, gloves, RPE)
- Accident / near-miss reporting and corrective actions
These records don’t just reduce incidents - they make claims far easier to defend.
Common Weak Points Insurers Notice
- Generic RAMS copied between sites without site-specific hazards
- No evidence of toolbox talks or inductions for labour-only subcontractors
- Inconsistent hot works controls (especially in occupied buildings)
- Poor housekeeping and combustible storage near welding/cutting
- Unclear responsibility split between you and principal contractor
- Lack of health controls for welding fume, grinding dust, and noise
- No documented lifting plans / exclusion zones for heavy installs
Tightening these areas can often improve insurability and reduce premium friction at renewal.
2) CDM Responsibilities for Fabricators (Supply & Install Work)
If your fabrication business installs, assembles, modifies, or maintains metalwork on construction sites (or within construction projects), you may have responsibilities under CDM. In most real-world situations, a fabricator carrying out on-site work is acting as a contractor (and sometimes as a designer if you produce drawings or change design intent).
From an insurance perspective, CDM matters because it affects the expected controls: inductions, coordination, site rules, welfare, permits, temporary works interfaces, and the clarity of design responsibility. Confusion here is a major claim driver.
When a Fabricator Can Be Considered a “Designer”
Many fabricators inadvertently step into a “design” role when they:
- Produce drawings / shop drawings relied on for fabrication and installation
- Propose alternative members, sections, fixings, or materials (“value engineering”)
- Alter details on-site to make things fit or work
- Confirm load capacity, suitability, or performance requirements
If you do any of the above, Professional Indemnity may be relevant in addition to PL/Products Liability.
CDM Documentation That Helps in Claims
- Clear scope of works, including design responsibility boundaries
- Site-specific RAMS and evidence of briefings
- Lift plans and exclusion zone plans where required
- Permits to work (hot works, confined spaces, isolation) where applicable
- Temporary works / access method statements where relevant
- Handover certificates / sign-offs and as-built documentation
If there is an incident, these documents often become “Exhibit A” in the investigation.
“Most disputes aren’t just about what happened - they’re about what you can evidence. Strong RAMS, sign-offs and inspection records can be the difference between a defended claim and an expensive settlement.”
Risk Adviser, Metal Fabrication (UK)3) Hot Works, Fire Risk & Permit Controls
Hot works is one of the most frequent and severe loss drivers for fabricators - especially when welding/cutting takes place in client premises, warehouses, plant rooms, or near combustible materials. Insurers commonly expect robust precautions and may apply conditions where hot works exposure is significant.
Practical controls typically include: site-specific risk assessment, combustible clearing, suitable extinguishers, fire watch, and post-work checks. The “best” system depends on the environment and the customer’s site rules, but having a consistent, documented approach is key.
Hot Works Controls Insurers Like to See
- Permit-to-work process where required by site/client
- Combustible materials cleared or protected (including hidden voids where possible)
- Fire watch during works and suitable post-works monitoring
- Correct extinguishers available and operatives trained
- Local isolation of alarms/sprinklers only under authorised control
- Good housekeeping (dust/flammables) and safe gas cylinder handling
If you routinely do hot works in occupied or high-value buildings, it’s worth discussing it explicitly at placement.
Insurance Reality Check
Public liability may respond if your hot works cause third-party property damage and you are legally liable, subject to policy terms and any warranties/conditions. However:
- Breach of a policy condition can cause claim disputes
- Contractual penalties for downtime are typically uninsured
- Damage to your own tools/equipment is usually a separate cover
Your best protection is prevention + strong evidence that controls were followed.
4) Lifting Operations (LOLER) & Heavy Install Risk
Installing fabricated steelwork, platforms, stairs, mezzanines, frames, and machinery guards often involves lifting: chain blocks, hoists, slings, spreader beams, cranes, forklifts, telehandlers and MEWPs. Lifting incidents can cause severe injury and major property damage - so insurers expect competent planning and inspection regimes.
Good Practice for Fabrication Lifts
- Lift plan appropriate to the lift complexity and risk
- Competent appointed person / supervision where required
- Slinger/signaller competence and clear communication
- Exclusion zones to protect others on site
- Pre-use checks and documented inspections
- Thorough examinations for lifting equipment (where applicable)
The goal is simple: prevent dropped loads, uncontrolled movement, and people being under suspended loads.
Insurance Implications
- Public liability for third-party injury/property damage (subject to policy terms)
- Employers’ liability for employee injury claims
- Plant/ hired-in plant insurance for damage to hired equipment (if arranged)
- Contract works for damage to works in progress (if arranged)
If you regularly use hired-in cranes/MEWPs/telehandlers, make sure your programme includes the correct hired-in plant and contract works arrangements.
5) Workshop Compliance: PUWER, Guarding & Maintenance
The workshop is where many fabrication injuries occur: presses, rollers, saws, guillotines, grinders, drills, CNC machines, extraction systems and compressors. Workshop compliance tends to come down to three pillars: safe equipment, safe systems, and competent people.
Insurers often ask about housekeeping, fire controls, machine guarding, extraction, and maintenance routines - because these directly influence claims frequency.
Workshop Risk Controls That Matter
- Machine guarding and interlocks maintained
- Emergency stops tested and accessible
- Planned preventative maintenance schedule
- Compressed air safety and pressure system controls
- Abrasive wheel controls and competence (where relevant)
- Extraction/LEV maintained and used properly
- Safe storage of cylinders, flammables and consumables
- Traffic management for forklifts / pedestrian separation
Why Record Keeping Helps
In an EL claim, insurers and legal teams typically look for proof:
- Was the machine safe and maintained?
- Was training provided?
- Were safe systems documented and enforced?
- Were hazards identified and controlled?
Even good businesses lose cases when they can’t evidence their controls. Documenting reality protects you.
6) COSHH, Welding Fume, Grinding Dust & Occupational Health
Fabrication risk isn’t only about accidents - it’s also about long-tail health claims. Welding fume, grinding dust, metal particulates, paints/coatings, solvents and cleaning chemicals can create exposure. Insurers often expect a practical COSHH approach: identify substances, implement controls, train staff, and monitor effectiveness.
The goal is to reduce exposures at source (engineering controls) before relying on PPE/RPE. Where RPE is used, fit testing and correct selection matters.
Controls Often Expected
- COSHH assessments for welding, grinding, coatings and chemicals
- Local exhaust ventilation (LEV) / extraction where needed
- Good housekeeping to prevent dust build-up
- RPE selection and fit testing (where required)
- PPE enforcement (eye, face, gloves, hearing protection)
- Health surveillance appropriate to exposures
- Noise and vibration awareness and controls
Insurance Link
Employers’ liability may respond to employee illness claims where the business is legally liable, subject to policy terms. Occupational illness claims can be complex, long-tail, and evidence-heavy - which is why documentation and controls matter.
Strong occupational health management can reduce incidents, reduce claim severity, and improve your underwriting profile.
7) How Insurance Fits With Compliance (And the Limits of Insurance)
Insurance is not a substitute for compliance. It is designed to transfer certain financial consequences of specific insured events. Understanding what each policy does helps you structure cover properly and avoid the “we thought it was covered” scenario.
Policies Most Relevant to Fabrication Compliance Risk
- Employers’ Liability – employee injury/illness claims
- Public Liability – third-party injury/property damage from your operations
- Products Liability – injury/property damage caused by your fabricated products after supply
- Professional Indemnity – design/advice/drawing negligence allegations
- Contract Works – damage to works in progress (project-specific)
- Plant / Tools – owned/hired-in plant damage (separate cover)
- Cyber – ransomware, data, and business interruption (where arranged)
What Insurance Typically Doesn’t Cover
- Fines and penalties imposed by regulators/courts (typically uninsurable)
- Deliberate non-compliance or intentional acts
- Contractual penalties (liquidated damages) for delay
- Pure cost to “make good” your own defective work/product (often excluded)
- Known issues that existed before policy inception
The best approach is: reduce risk through compliance, then insure the residual exposures with suitable wording and limits.
FREQUENTLY ASKED QUESTIONS
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Does insurance cover HSE fines or prosecution penalties?
Typically no. Fines and penalties are generally uninsurable. Liability policies are designed to cover compensation claims and (in many cases) legal defence costs for insured claims, subject to policy terms.
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I’m a fabricator - when do CDM rules matter to me?
CDM commonly becomes relevant when you carry out on-site installation, assembly, modification, or maintenance within a construction project. You may be treated as a contractor (and sometimes a designer if you provide drawings or change design intent), so clear scope and documented controls are important.
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What compliance documents do insurers usually want to see?
Common requests include RAMS, training/competence records, inspection and maintenance logs, hot works controls, lifting inspection evidence (where applicable), accident/near-miss reporting, and evidence of inductions/toolbox talks.
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If my welding caused a fire on-site, will public liability cover it?
Public liability is designed to respond to third-party property damage where you are legally liable, subject to policy terms and any applicable conditions. Hot works controls and evidence (permits, briefings, fire watch) can be important in claim handling.
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Does employers’ liability cover long-term illness claims from fumes or noise?
It may do where the business is legally liable, subject to policy terms. Occupational illness claims are evidence-heavy, which is why COSHH assessments, extraction/LEV maintenance, PPE/RPE controls and training records are so important.
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When do I need Professional Indemnity (PI) for compliance-related risk?
If you provide drawings, design input, calculations, specification advice, tolerancing or fixing recommendations - or you alter design intent on-site - PI can be important because those risks can sit outside standard public/products liability.
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How can compliance improve my premium?
Demonstrating strong risk controls (hot works systems, training records, lifting controls, maintenance regimes, housekeeping, and incident reporting) can reduce claim frequency and severity. Insurers often price confidence - good documentation can support better terms over time.
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How quickly can Insure24 arrange metal fabrication insurance?
Once we have your activities (fabrication only vs install), turnover, claims history, contract requirements, and key risk controls (hot works, lifting, maintenance, COSHH), we can usually progress quotes quickly. If you need urgent documentation for site access or onboarding, call us and we’ll prioritise your request.