Health and Safety Guide for Small Businesses

Running a small business means juggling many priorities, and health and safety can feel like an overwhelming burden. But it doesn't have to be. This guide cuts through the complexity to show you exactly what you must do, what you can do simply and affordably, and what really matters for keeping people safe.

Why small businesses must take health and safety seriously

You might think health and safety regulations are designed for large factories and construction sites, not small offices or shops. But the law applies to all businesses, regardless of size.

The legal position

The Health and Safety at Work Act 1974 and supporting regulations apply to:

• All employers, even if you employ one person
• The self-employed (if your work could affect others)
• Partnerships (each partner is liable)
• Limited companies (the company and potentially directors personally)

There's no exemption for "small" or "low-risk" businesses. However, what you must do is proportionate to your risks — a small office has simpler requirements than a chemical plant.

The business case

Beyond legal compliance, good health and safety makes business sense:

Avoid costly incidents:

• Employee injury can lead to sick pay, replacement costs, productivity loss
• Claims and litigation are expensive and time-consuming
• Reputational damage affects customer and employee confidence

Protect yourself from prosecution:

• HSE and local authorities prosecute small businesses
• Fines are unlimited and can be devastating for small businesses
• Directors can be personally prosecuted and even imprisoned in serious cases

Win contracts:

• Many clients and supply chains require evidence of health and safety compliance
• Tender processes often demand policies, risk assessments, and insurance
• Professional approach demonstrates business maturity

Attract and retain staff:

• Employees want to feel safe and valued
• Good health and safety reduces absence and turnover
• Demonstrates you care about your team, not just profits

Legal requirements for small businesses

Let's clarify exactly what the law requires, separating the essential from the optional.

Your fundamental duties (all businesses)

Under the Health and Safety at Work Act 1974, you must:

1. Ensure the health, safety, and welfare of employees (Section 2)

• Provide safe equipment and systems of work
• Ensure safe use, handling, storage, and transport of substances
• Provide information, instruction, training, and supervision
• Maintain a safe workplace with safe access and egress
• Provide adequate welfare facilities

2. Protect non-employees (Section 3)

• Ensure your business activities don't endanger visitors, contractors, customers, or the public

3. Conduct risk assessments (Management Regulations 1999, Regulation 3)

• Identify hazards in your workplace
• Evaluate the risks they present
• Implement control measures
• Record significant findings if you employ 5 or more people

4. Appoint a competent person (Management Regulations 1999, Regulation 7)

• Someone with training, knowledge, and experience to help you manage health and safety
• This can be you (if you get appropriate training), an employee, or an external consultant

5. Provide health surveillance where appropriate

• Monitor employee health if they're exposed to specific risks (e.g., noise, vibration, hazardous substances)

6. Have procedures for emergencies

• Fire evacuation plan
• First aid provision
• Serious and imminent danger procedures

7. Provide information and training

• Induction for new employees
• Training on specific risks and safe working
• Ongoing updates and refreshers

8. Consult employees on health and safety

• Listen to concerns and suggestions
• Involve employees in risk assessments and decisions

Specific exemptions for small businesses

If you employ fewer than 5 people:

You are exempt from:

• Requirement to have a written health and safety policy (Section 2(3) HSWA 1974)
• Requirement to record your risk assessment findings (though you still must conduct assessments)

You still must:

• Actually assess and manage risks
• Have competent health and safety support
• Provide training, information, and safe systems
• Comply with all other health and safety law

If you're self-employed with no employees:

You are exempt from:

• Health and safety policy requirement
• Most of the Management Regulations (which apply to employers)

You still must:

• Ensure your work doesn't endanger yourself or others (Section 3(2) HSWA)
• Comply with specific regulations relevant to your work (e.g., working at height, electrical safety, manual handling)
• Follow site rules when working on client premises

Employer's Liability Insurance

If you employ anyone (even part-time, temporary, or casual staff), you must have Employer's Liability Insurance.

• Minimum cover: £5 million (though most policies provide £10 million)
• Display the certificate where employees can see it (or make it available electronically)
• Failure to have insurance is a criminal offense with fines up to £2,500 per day
• Keep old certificates for at least 40 years

Exception: You don't need it if you only employ close family members (but check your insurer's definition).

Getting started: Essential first steps

If you're setting up health and safety for the first time, follow these steps in order:

Step 1: Identify your hazards

Walk around your workplace and think about what could cause harm. Consider:

Common small business hazards:

Office-based:

• Slips, trips, and falls (cables, wet floors, stairs)
• Manual handling (moving files, deliveries, furniture)
• Display screen equipment (computer work)
• Fire
• Electrical equipment
• Stress and mental health

Retail:

• Manual handling (stock, deliveries)
• Customer aggression
• Cash handling and robbery
• Slips and trips (especially in public areas)
• Working alone or late hours
• Fire

Light manufacturing or workshop:

• Machinery and tools
• Manual handling
• Hazardous substances (paints, solvents, adhesives)
• Noise
• Dust and fumes
• Fire

Mobile or service-based (trades, care, delivery):

• Driving
• Working at height (ladders, scaffolds)
• Electrical work
• Lone working
• Client premises risks
• Manual handling
• Violence and aggression

Step 2: Assess and control the risks

For each hazard identified:

Ask:

• Who might be harmed and how?
• What are we doing already to control the risk?
• Is it enough?
• What more should we do?

Apply simple controls:

Most small business risks can be controlled with straightforward measures:

Document your assessment:

If you employ 5 or more people, write it down. Even if you employ fewer, documenting helps with consistency and demonstrates compliance if questioned.

Use a simple table:

HSE provides free templates: search "HSE risk assessment templates" for your sector.

Step 3: Get competent support

You must appoint at least one competent person to help you manage health and safety.

Options for small businesses:

1. Be your own competent person

• Attend a training course (IOSH Managing Safely costs £300-500, takes 3-4 days)
• Use free HSE guidance and resources
• Suitable for very small, low-risk businesses (offices, shops, low-risk services)
• You must recognize when you need external specialist help

2. Appoint an employee

• Choose someone reliable and respected
• Provide them with training (IOSH or similar)
• Give them time to carry out the role (don't just add it to their existing full workload)
• Support with resources and authority

3. Use external consultant

• Engage on a retainer (e.g., quarterly visits, phone/email support)
• Typical costs: £500-2,000 per year for small businesses depending on complexity
• They conduct risk assessments, provide templates, give advice, and review annually
• You maintain day-to-day awareness and implementation

4. Hybrid approach (recommended for most small businesses)

• You or an employee handle day-to-day matters with basic training
• External consultant provides annual review, specialist advice when needed, and peace of mind
• Best balance of cost and quality

Step 4: Set up emergency procedures

Fire safety:

• Install smoke alarms (linked alarms for larger premises)
• Provide fire extinguishers (service annually)
• Identify escape routes and keep them clear
• Create simple fire evacuation plan (who calls 999, where to assemble, who checks building if safe)
• Test alarms weekly (press the test button, rotate which alarm you test)
• Conduct fire drills (twice a year for simple premises)
• Conduct a fire risk assessment (you can do a simple one yourself using HSE guidance, or pay a specialist)

First aid:

• Appoint a first aider (one-day Emergency First Aid at Work course, costs £80-150)
• For very low-risk offices with few staff, an "appointed person" (no formal qualification) may be acceptable
• Provide first aid kit (basic kit costs £15-30, check and restock regularly)
• Display notices showing who the first aider is and where the kit is located

Serious and imminent danger:

• Who has authority to stop work if there's immediate danger?
• How do you evacuate or account for everyone?
• Who calls emergency services?

These don't need to be complex documents — a one-page plan covering "what to do if..." scenarios is often sufficient.

Step 5: Provide basic training and information

Induction for new employees: Cover (in first day or week):

• Emergency procedures (fire exits, assembly point, first aid)
• Key hazards in your workplace
• Who to report problems to
• Any specific safety rules (PPE, equipment restrictions, etc.)

Keep it short and practical — 15-30 minutes for low-risk environments.

Job-specific training:

• How to use equipment safely
• Manual handling technique if lifting is involved
• Any specific procedures or risks for their role

Ongoing refreshers:

• Annual reminders of key points
• Updates when procedures change
• Respond to incidents or near-misses with learning

Affordable approaches for small businesses

Health and safety doesn't have to break the bank. Here's how to comply affordably:

Free or low-cost resources

HSE website (hse.gov.uk):

• Free guidance for every industry and hazard
• Risk assessment templates
• Example policies
• Toolbox talks and training resources
• Sector-specific guides

Trade associations:

• Many provide free templates and guidance for members
• Sector-specific risk assessments
• Helplines and webinars

Local authority:

• Some offer free or subsidized workshops for small businesses
• Business support and advice services

Online training:

• Cheaper than in-person courses (but check quality and accreditation)
• IOSH Managing Safely available online from £350
• Basic awareness courses often under £100

Where to invest your budget

If you have limited budget, prioritize:

1. Training for yourself or key person (£300-500)

• IOSH Managing Safely or equivalent
• Gives you knowledge to manage day-to-day
• One-time cost with long-term benefit

2. Basic risk assessment and policy support (£500-1,000)

• External consultant to review your premises, identify gaps, provide templates
• Can be one-off or occasional (annual review)

3. Emergency equipment (£100-300)

• Fire extinguishers, first aid kit, smoke alarms
• Essential and low-cost

4. Employer's Liability Insurance (£100-500/year)

• Legally required if you employ anyone
• Shop around for competitive quotes

What you probably don't need to spend on (yet):

• Expensive software (spreadsheets or simple documents work fine for small businesses)
• Ongoing monthly consultancy (quarterly or annual is usually enough for low-risk businesses)
• Complex accreditations (ISO 45001 is valuable for larger organizations but overkill for most small businesses)

Common small business scenarios

Scenario 1: Small office (5-10 employees)

Main risks: Slips/trips, fire, DSE, manual handling (deliveries), stress

Essential actions:

• Risk assessment covering the above
• Fire evacuation plan and weekly alarm tests
• First aider or appointed person
• DSE assessments for computer users (simple self-assessment checklist)
• Induction for new staff
• Written policy (you have 5+ employees)
• Employer's Liability Insurance

Approximate cost:

• Training: £350 (IOSH online)
• Risk assessment template: Free (HSE)
• First aid training: £100
• First aid kit and fire extinguisher: £100
• Annual consultant review (optional): £500
• Employer's Liability Insurance: £200-400/year

Total first year: £750-1,450 (plus insurance)

Scenario 2: Retail shop (3-8 employees)

Main risks: Manual handling (stock), slips/trips, customer aggression, fire, lone working, cash handling

Essential actions:

• Risk assessment
• Manual handling training
• Fire safety (alarms, extinguisher, evacuation plan)
• Procedure for aggressive customers (training, panic button if appropriate)
• Lone working procedures (check-ins, ability to call for help)
• Cash handling and security procedures
• Induction for new staff
• Written policy if 5+ employees
• Employer's Liability Insurance

Approximate cost:

• Training: £400 (IOSH)
• Manual handling training: £50-100 (online or in-person)
• Fire and security equipment: £200-400
• Consultant for risk assessment and templates: £600-1,000
• Employer's Liability Insurance: £300-500/year

Total first year: £1,550-2,400 (plus insurance)

Scenario 3: Trades/contractor (self-employed or 1-3 employees)

Main risks: Working at height, tools and equipment, manual handling, driving, electrical, lone working, client premises

Essential actions:

• Risk assessment (including RAMS for high-risk activities)
• Working at height training and equipment
• Tool and equipment maintenance
• Vehicle safety checks
• Method statements for specific jobs
• Site-specific risk assessments for client premises
• Training certificates (clients often require evidence)
• If employing: Employer's Liability Insurance

Approximate cost:

• Training: £400-600 (IOSH + working at height or trade-specific)
• Equipment (ladder, harness if needed, PPE): £200-1,000
• Consultant for templates and RAMS: £500-1,000
• Employer's Liability Insurance (if employing): £200-400/year

Total first year: £1,100-3,000 (depending on equipment needs)

Common mistakes small businesses make

1. Assuming you're too small to worry about it

The mistake: "We're only a tiny business, health and safety doesn't apply to us."

Why it's wrong: The law applies to all employers. HSE and local authorities prosecute small businesses regularly. Being small doesn't exempt you — though it does mean your obligations are proportionate to your risks.

The fix: Understand your legal duties and meet them. Proportionate doesn't mean non-existent.

2. Copying templates without customization

The mistake: Downloading a generic risk assessment or policy, changing the company name, and filing it without reading or adapting it.

Why it's wrong: Generic documents don't reflect your actual hazards or controls. Inspectors spot them immediately, and they're useless for actually managing risk.

The fix: Use templates as a starting point, but walk your workplace, identify your real hazards, and describe your actual controls.

3. Thinking insurance covers everything

The mistake: "We have insurance, so we're covered if something goes wrong."

Why it's wrong: Insurance covers compensation claims but doesn't protect you from prosecution or fines. Employer's Liability Insurance is legally required, but it doesn't replace the need to comply with health and safety law.

The fix: Have insurance and manage risks properly. Insurance is a safety net, not a substitute for compliance.

4. No training or induction

The mistake: Hiring someone and putting them straight to work without explaining hazards, emergency procedures, or safe working.

Why it's wrong: New employees are at highest risk — unfamiliar with the workplace, equipment, and procedures. Lack of training is one of the most common failings in prosecution cases.

The fix: Provide induction on day one covering emergencies, key hazards, and who to ask for help. Provide job-specific training before they do high-risk tasks.

5. Ignoring near-misses

The mistake: "No one was hurt, so it's fine."

Why it's wrong: Near-misses are warnings. Today it was luck; tomorrow it might be a serious injury. Ignoring them means you'll repeat the same mistakes.

The fix: Encourage reporting of near-misses without blame. Investigate what went wrong and fix it. Learn from close calls before they become incidents.

6. Not reviewing or updating

The mistake: Setting up health and safety once and never looking at it again until an inspector or incident forces you to.

Why it's wrong: Work changes, equipment changes, people change. What was adequate two years ago may not be now. Stale risk assessments and policies suggest health and safety isn't actively managed.

The fix: Schedule annual reviews (set a calendar reminder). Review when you introduce new activities, equipment, or premises. Keep it current.

Continuous improvement

Once you've got the basics in place, consider how to improve:

Build a safety culture

Even in a small team, culture matters:

• Lead by example — if the owner ignores safety rules, employees will too
• Encourage speak-up — make it safe to raise concerns without fear of blame
• Celebrate good practice — recognize when people work safely or suggest improvements
• Learn from mistakes — near-misses and incidents are learning opportunities, not just disciplinary matters

Involve employees

Your employees often know the risks better than you do:

• Ask for input when conducting risk assessments
• Invite suggestions for improvements
• Hold brief safety discussions at team meetings
• Act on concerns raised — even if you can't fix everything immediately, explain what you're doing

Monitor and measure

Track simple metrics to understand performance:

• Number of incidents and near-misses (increasing near-miss reports is often good — means people are speaking up)
• Actions outstanding from risk assessments or audits
• Training completion rates
• Results of workplace inspections

Don't overcomplicate — a simple spreadsheet is fine.

Stay current

Health and safety law and guidance change:

• Subscribe to HSE updates (free email alerts)
• Check trade association updates
• Review your arrangements annually
• Update when regulations change

Frequently asked questions

Next steps for small businesses

To establish or improve health and safety in your small business:

1. Understand your legal duties — read this guide and the HSE basics for your sector
2. Identify your hazards — walk your workplace, think about what could cause harm
3. Assess and control risks — for each hazard, what are you doing to manage it?
4. Get competent support — training for yourself or external consultant
5. Set up emergency procedures — fire, first aid, serious danger
6. Provide induction and training — ensure everyone knows the basics
7. Document your approach — especially if 5+ employees, but good practice regardless
8. Review annually — set a calendar reminder and keep it current
9. Build it into your culture — make health and safety part of how you do business, not a separate compliance exercise

Related articles:

• What is a Competent Person?
• Comprehensive Risk Assessment Guide
• Health and Safety Responsibilities

Useful tools:

• Small Business Health and Safety Checker
• Quick Risk Assessment Tool