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Businesses warned to insure against Corporate Manslaughter Bill
21/05/2007
Businesses should be aware that they face big bills and trips to the solicitors if they do not prepare for the introduction of the Corporate Manslaughter Bill.
The bill should be passed in Britain and Northern Ireland by July at the latest, meaning companies could face criminal convictions and unlimited fines if a fatal accident occurs due to managers' negligence.
With this news many insurance companies are touting a Directors' and Officers' (D&O) insurance policy to cover managers in the event of the death of an employee through professional negligence.
Callum Taylor, management liability underwriting manager at Hiscox, commented: "The legislation could lead to companies facing prosecution for breach of their duty in areas not previously considered.
"An example of this could be a company's failure to ensure its employees' cars are kept in a roadworthy condition when being used in the course of their employment, even in cases when employees are using their own cars."
According to Hiscox's survey of small to medium-sized companies in Britain and Northern Ireland, seven out of ten bosses believed the new bill would make it more likely that they ended up in the solicitors.
Contact us for legal advice
The bill should be passed in Britain and Northern Ireland by July at the latest, meaning companies could face criminal convictions and unlimited fines if a fatal accident occurs due to managers' negligence.
With this news many insurance companies are touting a Directors' and Officers' (D&O) insurance policy to cover managers in the event of the death of an employee through professional negligence.
Callum Taylor, management liability underwriting manager at Hiscox, commented: "The legislation could lead to companies facing prosecution for breach of their duty in areas not previously considered.
"An example of this could be a company's failure to ensure its employees' cars are kept in a roadworthy condition when being used in the course of their employment, even in cases when employees are using their own cars."
According to Hiscox's survey of small to medium-sized companies in Britain and Northern Ireland, seven out of ten bosses believed the new bill would make it more likely that they ended up in the solicitors.
Contact us for legal advice
