Corporate Manslaughter and Corporate Homicide Act 2007

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