FPB helps small firms guard against corporate manslaughter prosecutions

13 June 2008

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The FPB is helping the owners of small businesses to guard against prosecution under the Corporate Manslaughter Act (Corporate Homicide Act in Scotland). The regulations, which leaves firms facing unlimited fines following fatal work-related accidents, were introduced by the Government in April.

The new offence places the onus on business owners to ensure they have the correct health and safety procedures in place, and prove they did not breach any duty of care owed to the deceased. In addition to a huge fine, failure to do so could lead to a business being publicly named and shamed, and even its owner or directors being imprisoned.

The FPB has teamed up with Qdos Consulting to offer comprehensive and cost-effective directors' and officers' (D&O) insurance. Cover for employment practice liability and crime is also available.

"It is important that small firms act now to protect themselves, their employees, customers and contractors, or face paying the price further down the line," said the FPB's Senior Member Services Representative, Philip Moody. "We strongly recommend that the owners and directors of businesses take out the FPB's directors' and officers' liability insurance cover as a matter of course."

Further assistance is provided by the FPB's annually-updated Health & Safety Guide, which covers general and sector-specific regulations. It is accompanied by a range of sample forms such as risk assessment on CD-ROM, which can be personalised for use with the subscriber's business, and comes in a simple ‘comply-as-you-complete' format.

The FPB is warning that freight transport firms, and companies which provide their employees with company cars, could be at most risk of prosecution under the Act.

FPB member John McGuiness is Managing Director of Shires Safety Consultants Ltd, Market Drayton, Shropshire. He subscribes to the FPB Health & Safety Guide. The company recently held a seminar on the implications of the Corporate Manslaughter Act.

"Many small businesses are totally and utterly unaware of the potential issues they face. They know about the Act itself, but are oblivious as to how it could impact on them," he said. "They will have to defend themselves in the event of a prosecution and it could take three or four years before the case is actually heard, during which time they are likely to have gone out of business. The stress will be unbearable and, even if they win, what recompense is there at the end of it?"

He added: "It is not selective legislation and can impact on anyone who has a business. However, I think that the transport industry will be the first to feel the effects, and also those companies which provide company cars. Firms should be proactive, re-visit their existing health and safety procedures, and implement new ones, as necessary."

More information about the directors' and officers' liability insurance is available by calling the FPB's helpline on 0845 130 1722. Alternatively email directorsinsurance@fpb.org or click here.

To purchase the FPB's Health & Safety Guide, which has been fully updated for 2008 to take account of changes to regulations, click here. Alternatively email guides@fpb.org or call 0845 130 1722. The guide costs £95 for members of the FPB, and £195 for non-members (based on subscriptions by Direct Debit).

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FPB helps small firms guard against corporate manslaughter prosecutions

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