Managing Risk: Charities with Asbestos-Containing Buildings

Despite being banned from construction and refurbishment since 1999, asbestos-containing materials (ACMs) are still prevalent in many older structures, including those housing charitable organisations.

In April 2022, MPs recommended a 40-year deadline for removing asbestos from the estimated 300,000 public and commercial buildings that still contain it. However, the government rejected this proposal from the Work and Pensions Committee. Following this, under the Freedom of Information Act (FOI) requests, law firm Irwin Mitchell contacted 20 of the highest-populated council areas to assess the asbestos situation in public buildings. The findings revealed that 4,533 public buildings across these councils, still contain asbestos, averaging 225 buildings per local authority. The more concerning part is that school buildings make up almost a quarter of the total number.¹

Furthermore, many of these buildings serve as vital premises for charitable activities, underscoring the widespread and enduring nature of the asbestos challenge.

The asbestos legacy in the UK

Asbestos, or ACMs, were historically utilised in construction as insulation in roofing and as spray coatings on structural steelwork. Despite their widespread usage, these materials were banned in 1999 because they posed serious health risks. Asbestos, when disturbed, releases microscopic fibres that can cause diseases like lung cancer, mesothelioma and asbestosis.

However, stringent regulations have not eradicated ACMs from buildings. There are several public and commercial buildings across the country still contain asbestos, and removing these ACMs from premises may take several decades.

Time is of the essence as asbestos-related diseases remain a significant concern, with over 5,000 people dying annually in the UK due to these conditions.²

Decades of asbestos danger

Workers in public buildings, such as schools, hospitals and charity organisations, are particularly at risk from exposure, as asbestos was commonly used in construction materials for these premises. For affected workers, related health issues may surface many years after initial exposure due to the prolonged latency period of these conditions.

Asbestos exposure can also cause mesothelioma - a particularly aggressive cancer – which is responsible for a substantial number of annual asbestos-related deaths in the UK.

Moreover, family members of exposed workers are at risk of secondary exposure, as asbestos fibres can be inadvertently brought home on clothing and skin, leading to similar health complications.³ The long-term effects of asbestos exposure can severely impact daily life, with conditions like asbestosis gradually worsening over time and potentially resulting in fatal complications.

Asbestos in public buildings poses a significant challenge, as their removal is far from easy. It is a complex and costly process, often requiring specialised expertise and extensive safety precautions to protect workers and building occupants.

The legal and regulatory landscape

While regulatory recommendations for asbestos removal have been proposed, property owners and managers are primarily responsible for managing ACMs within buildings, including those operated by charities.

Failure to properly manage ACMs in public and charity buildings can have significant legal and regulatory consequences. Under the Control of Asbestos Regulations 2012⁴, duty holders, such as building owners or managers, are responsible for identifying and assessing the risks posed by ACMs.⁵ Ignoring asbestos surveys and proceeding with demolition or renovation work without removing identified ACMs can result in fines and even imprisonment.

The Health and Safety Executive (HSE) enforces asbestos regulations in the UK and can impose penalties of up to £20,000 in fines and one year of imprisonment for non-compliance. Duty holders are legally obligated to take reasonable steps to locate and assess ACMs to avoid exposing workers and the public to asbestos-related health risks.

A demolition contractor in Chadderton, Oldham was recently sentenced to 24 weeks of imprisonment for failing to prevent workers from being exposed to asbestos during a demolition project.⁶ Additionally, a firm specialising in asbestos removal was fined a substantial amount for not meeting the required standards for their work.

Risks for charitable organisations

Charities often operate out of older buildings, including converted houses, halls, offices and even mobile (prefabricated) structures. As these buildings are more likely to contain asbestos, vigilant risk management is necessary to ensure the safety of staff, volunteers and visitors.

There have been significant failures in asbestos management within UK buildings, highlighting the need for robust procedures and awareness. For charities, the stakes are high regarding health risks and legal and financial implications.

Risk management procedures

To manage the risks associated with asbestos, charities must adhere to the following procedures:

• Asbestos survey and register: All buildings constructed before 2000 must have an asbestos register. This involves a thorough survey to identify any ACMs documenting their location and condition.
• Risk assessment: A comprehensive risk assessment should be conducted before refurbishing or maintenance work. This should assume the potential presence of asbestos unless proven otherwise.
• Training and awareness: It is crucial to ensure that all employees, volunteers and contractors are aware of asbestos risks and trained to recognise and report suspicious materials. Regular training sessions can help maintain high awareness levels.
• Specialist removal and disposal: If asbestos-containing material is discovered, all work should cease immediately, and a specialist asbestos removal company should handle its safe removal and disposal to minimise the risk of exposure and ensure compliance with legal requirements.
• Emergency procedures: It is essential to have a clear plan for dealing with accidental asbestos disturbance. This plan should include immediate evacuation, informing the relevant authorities and engaging specialists to manage the situation.

Navigating insurance challenges

Since 2003, UK insurers have consistently excluded asbestos from both Employers' and Public Liability policies.¹⁰ Initially, the exclusion was complete, but after public outcry, a few carriers decided to provide a limited coverage for accidental exposure, contingent upon immediate action to address the issue. This coverage typically carries an aggregate limit, often significantly lower than the total indemnity limit of the policy.

Charities should be aware of the accidental asbestos exposure coverage in their insurance policy, as it is a safety net for potential health and liability concerns.

How can Gallagher help?

We are here to protect your charity with adequate insurance coverage, helping to safeguard against unforeseen losses. We will check your insurance to find potential gaps and help ensure that your insurance coverage works for you.

If you would like to speak with our specialist team regarding your asbestos risk or your insurance programme, please get in touch with the Gallagher's Charities SME & Affinity Teamon 0121 200 4951.