Novae launches corporate manslaughter policy
Novae Insurance is launching a directors’ and officers’ (D&O) liability policy in response to the Corporate Manslaughter and Corporate Homicide Act 2007, which came into force last month.
The change in the law means that companies, rather than solely individuals, can face a charge of manslaughter if an employee dies as a result of failures in health and safety matters.
Novae’s new policy provides cover for legal defence costs in cases of corporate manslaughter and is aimed at privately-owned limited companies with a turnover of up to £100 million.
The policy provides separate limits of cover for both the company and the individual and includes specific employment practices liability.
According to Jon Morgan, Novae’s regional unit head of UK financial lines, many companies with a turnover of up to £100 million will remain without D&O liability cover, despite the introduction of the new act.
In some cases this is because directors and officers believe that limited liability status will protect them from being sued. Mr Morgan is keen to point out that it does not.
Category: Business Insurance News, Companies News, Insurance News
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