Steady rise in asbestos prosecutions
According to Reynolds Porter Chamberlain (RPC), the law firm, criminal prosecutions brought under the Control of Asbestos at Work Regulations 2002 reached 37 in number, in 2005/06.
The Health and Safety Executive launched the first prosecutions under the legislation in 2003/04, when seven actions were taken.
The number of cases rose to 12 in 2004/05 and increased again, to 37, in 2005/06.
More recent statistics are not available, but RPC is suggesting that the growth in the number of prosecutions is a clear indicator that all businesses should be aware of the asbestos issue.
Successful prosecutions have serious implications for businesses and their individual directors.
Breach of the legislation can lead to a criminal conviction and serious damage to a company’s reputation.
In addition, the costs involved can result in important implications for the insurance of a business.
Costs and damages in civil cases involving asbestos will often attract liability cover but some insurers exclude asbestos from their cover because they regard it as extremely high risk.
Where available, liability cover will meet defence costs that are improved by the insurer.
However, fines or penalties imposed in criminal proceedings are not covered and the financial consequences for a company can be disastrous.
The average penalty for health and safety convictions in 2005/6 was £29,997. The figure includes several fines exceeding £100,000.
Category: Insurance News, Legal News
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