Regulator gets tough on public liability rules
It has been revealed that a guidelines council has toughened up laws on businesses who need public liability cover.
According to new regulations by the Sentencing Guidelines Council, public liability insurance customers should be fined a minimum of £500,000 if found guilty of corporate manslaughter.
However, there are concerns that this penalty is too steep, and could harm small companies who are trying to survive in the financial downturn.
It is feared that the recommendations published this week by the group, could push small and medium-sized businesses under if they were found guilty.
An earlier proposal to fine firms between 2.5% and 10% of their turnover was replaced by the £500,000 penalty, irrespective of the size of the public liability insurance customer.
Kirsty Gomersal, a director in the regulatory team at law firm, said: “The negative publicity that this would generate could push a struggling company over the edge.”
Colin Finch, health and safety officer, agreed that the ruling was unfair as it “could signal the end for some firms,” he stated.
Contractors convicted under the Corporate Manslaughter Act could also be forced to publicise their guilt, which would require them to send accounts of their offences to customers, shareholders and the press.
The consultation period for the rule ends on January 5th and the final guideline will be published soon after.
Health and Safety issues
As a result, the Health and Safety Executive (HSE) are reminding businesses to purchase public liability cover and to carry out regular risk assessments on new worksites, to avoid compensation claims and hefty fines.
The warning comes after a building firm in Huntapac, near Preston, was penalised nearly £10,000, after it was prosecuted for breaching two health and safety rules.
Ormskirk magistrate’s court heard how two workers who were lifting a metal ladder were electrocuted in December 2007 when it made contact with an 11,000 volt overhead power line.
One of the employees fell unconscious and suffered electrical burns to a hand and both of his feet, while the other man’s feet were also burned.
HSE inspector Matt Lea, said that both workers were lucky to be alive following the incident, which could have easily been prevented.
He commented: “I hope this case will remind companies how important it is for health and safety checks to take place ahead of work starting at a new site. Without them, employers are putting the lives of their staff at risk.”
HSE inspector Joanne Williams, also highlighted the importance of bosses keeping their staff safe: “It is vital that they are adequately supervised,” she added.
However, there has been a drop in work accidents recently within the UK. According to the HSE, the number of fatal injuries occurring in workplaces dropped to 180 in the 2008-09 period, compared to a figure of 233 the year before.
The organisation''s chair Judith Hackitt, however said that employers must not relax on work safety: “ Having shown that Great Britain can achieve a performance that compares favourably with other industrialised nations as we entered the global recession, the challenge now is to maintain that improvement.”
Updated on 09/11/2009