Firm fined £385k under new act
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The first case
tried under the Corporate Manslaughter and Corporate Homicide Act
2007 has ended with the defendants being fined £385,000.
The prosecution followed the death of a workman in September
2008 when a deep trench in which he was working collapsed on
him.
A corporate manslaughter prosecution could be the tip of the
iceberg as the directors and officers involved could theoretically
then be prosecuted and fined under separate health and safety
legislation - the fine could be substantial if a death is
involved.
Businesses should ensure their employer and public liability
insurances include defence costs against corporate manslaughter and
health and safety prosecutions and that an adequate limit
applies.
£1m is typical and should apply across both corporate
manslaughter and health and safety prosecutions.
Fines are not insurable as that is considered to be against the
public interest.
Looking at the wider picture, an unsuccessfully defended
prosecution may result in the insurer being unable to avoid
settling any claim for compensation made by or on behalf of the
injured person.
Such payments can only lead to the possibility of increases in
premium at next renewal of the policy concerned.
In addition, any insurer considering the renewal terms and
conditions to be applied to a prosecuted company will be looking
very closely at what changes have been made in that company's
procedures and their attitude towards health and safety
generally.
Insurers will require convincing that lessons have been learned
and implemented.
The critical point is that health and safety is not merely a
'tick box' administrative process - it is an essential and
statutory requirement for any business to take all steps to
minimise the risk of injury to its workforce and must be deeply
embedded in the company culture from the top down.
Anything less is unacceptable.
Monday, April 11 2011
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