Legal framework to promote high standards of health and safety at work. It sets out general duties employers have towards employees, customers and the general public. It also sets out the duties that employees have towards themselves and their colleagues. The duties are based on the ideal of ‘so far as is reasonably practicable’ meaning the time, cost and difficulty to avoid or reduce a risk have to be balanced against the degree of risk itself. Persons with five or more employees must have a written safety policy. The law is enforced by HSE inspectors or environmental health officers. Where problems exist they may issue improvement notices or prohibition notices. Criminal prosecutions can be against companies and individuals. See HEALTH AND SAFETY COMMISSION; HEALTH AND SAFETY EXECUTIVE.

The HSC and the Health and Safety Executive administer the Health and Safety at Work, etc., Act 1974 and are a focus of initiative for all matters relating to health and safety at work. HSC consists of representatives of both sides of industry and the local authorities. It is responsible for developing policies in the health and safety field, and for making proposals to the appropriate minister. When HSC takes action it can: (a) issue guidance on specific industries or processes; (b) publish an Approved Code of Practice; (c) propose statutory regulations or changes in existing regulations.

A separate statutory body appointed by the Health and Safety Commission that works in accordance with the advice and guidance given by the Commission. The Executive also enforces legal requirements and provides an advisory service to both sides of industry. The major inspectorates in the health and safety field are within the Executive.

A unit of temperature in a weather derivative measuring how low the average daily temperature is relative to a reference temperature, usually 18°C or 65°F. A baseline of 18°C minus an average temperature of 13°C gives 5 HDDs signifying how much heating is required that day by a weather-affected trader, e.g. pavement café. The payout is a specified notional amount, i.e. the tick, multiplied by the difference between the HDD level specified in the contract (the strike) and the cumulative HDDs for the period. HDDs are used as a hedge against ‘cooler’ summers by leisure companies, beverage suppliers, etc. Compare with cooling degree days. See COOLING SEASON; HEATING SEASON.

Process involving the application of heat such as drying, baking and cooking. The term is significant in fire insurance as damage to any property undergoing a heating process is an excluded form of loss. It is not an excluded risk, as any fire damage that flows from the damage to the heated property will be covered by the policy.

Weather risk term meaning November to March. Weather derivatives may run for just one season or a full year. See COOLING SEASON.

Upward movement of land that can result from the expansion of the clay sub-soil after the removal of trees or other vegetation or from the natural movement of earth and rock. Heave is usually insured when subsidence is also covered.
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Horizontal displacement upwards, as distance from subsidence.

A conservative strategy used to limit financial loss by effecting a transaction that offsets the underlying position. A hedge correlates with the risk so a profit made on a futures or option contract mitigates the loss on an investment or activity. See WEATHER DERIVATIVES.

Restrictive endorsement in liability insurance operating as an exclusion or a warranty to regulate the height at which work may be undertaken. For example, a public liability policy may exclude work at heights in excess of 40 feet. Compulsory employers’ liability legislation does not prohibit the use of restrictive trade endorsements. As an alternative the policy may exclude work on particular types of buildings such as blast furnaces.

1. Cover granted by marine insurers under the ‘held covered’ clause to protect the insured in circumstances to which the policy does not otherwise apply such as when the vessel navigates in waters not permitted under the Institute Warranties. Cover is conditional upon the insured giving the insurer prompt notice and paying any reasonable additional premium. 2. Insurers may ‘hold covered’ pending completion of the formal arrangements.