Companies need to make sure they have their house in order when it comes to health and safety and insurance after the Crown Prosecution Service (CPS) sought its first ‘guilty verdict’ under the Corporate Manslaughter and Corporate Homicide Act.
Concerns have increased following news that a director of Cotswold Geotechnical Holding, a construction company, has been charged by the CPS with gross negligence manslaughter under the new Act, which came into force in April 2008. The prosecution of Peter Eaton follows the death of a geologist employee, who was killed while working on a building site operated by the Gloucestershire-based business.
David Armstrong, Associate Director at Belmont International, said: “If the court finds Mr Eaton guilty he could receive a sentence of life imprisonment and the company could be given an unlimited fine.
“Every firm, and in particular those where the risks of injury are higher such as agriculture, construction, engineering, transportation and manufacturing, needs to review their risk management procedures and also ensure they have all the necessary insurances in place.
Key insurance covers to be addressed include Employers’ Liability, a legal requirement, Public Liability and Directors’ and Officers’ Liability. Whilst no form of insurance can keep a director out of prison, carefully considered insurance cover does provide a valuable line of defence that may protect both director and company financially. But, says David, none of these could or should be relied upon instead of sound risk management and particularly a proactive approach to health and safety.
Since April 2008, the Health & Safety Executive has recorded 229 fatal accidents at work, a rate of 0.8 per 100 000 workers, which is one of the best fatalities at work records within the European Union. In addition to this 70 members of the public have died on commercial premises in the past year.
David continues, "it’s clear that neither the CPS or the Health and Safety Executive intend to let the 2008 Act go unused. Whilst we recognise the need for companies to manage costs and to avoid being burdened by red tape and compliance, the importance of getting the basics right has never been clearer.
To find out more about insurance and risk management call David Armstrong at Belmont International on 01732 744715.