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1. Corporate Manslaughter and Corporate Homicide Act 2007 The Insurance Industry’s Response
2. Corporate Manslaughter and Corporate Homicide Act 2007 How are insurers responding?
Is cover available for what is essentially a criminal act?
3. In short - Yes Many insurers have started to include automatic
cover at no additional cost under the following
policies:-
Employers Liability – liability to employees
Public/Products Liability – liability to the public
Motor Fleet – liability to the public on the road
But check with your brokers or insurers
4. The Extent of the Cover Cover varies from insurer to insurer
Cover is for legal costs and expenses excluding fines & penalties
Appeals – only if counsel feels strong prospects of success
Inner limits within the policy limit of indemnity – adequate?
Excludes – Publicity Orders (loss of reputation)
– Remedial Orders (expected as minimum)
5. Alternatives Are these policy extensions wide enough in their scope? What other protection is available for companies?
Commercial Legal Expenses – includes prosecution defence including Health & Safety at Work Act 1974 – BUT some exclude manslaughter; prospects of success clause
Entity protection as an extension to a Directors & Officers policy – emerging Management Liability policies
6. Directors & Officers Liability Directors, officers, supervisors, managers, health & safety officers etc in their personal capacity not the company itself
Cover includes civil & criminal legal defence costs & civil awards
Extends to reimburse companies where they have paid directors and officers defence costs on their behalf
7. Entity Defence Health & Safety Investigations
Public Relations Crisis Management – inner limit
(other sections include Identity Fraud, Breach of Contract, Pollution defence, Taxation & Data protection, Regulatory Investigations)
Advantages – separate limit of indemnity, specialist insurers, no prospects of success clause
Employment Law – optional extension
8. Defending a charge of manslaughter In short – demonstrate all reasonable steps taken to ensure Health & Safety of employees, management actions recorded in order to provide an audit trail
Risk Management – “insurers friend”, helps develop an ongoing relationship with your insurer & results in reduced & more stable rates
9. Summary Check Employers, Public & Products Liability & Motor Fleet policies are being extended & check any inner limits
Check extent of any Commercial Legal Expenses cover
Consider Directors & Officers liability with Entity extension
Inform broker or insurer of any improved Risk Management procedures
10. Any Questions ?
t.green@howellshone.co.uk