Brokers 'lack support' on corporate manslaughter

With the first prosecution under the Corporate Manslaughter Act in progress, an Allianz survey has revealed that 42% of brokers feel that insurers have provided neither they nor their clients with sufficient support to manage their responsibilities.

According to the study of over 1,500 brokers working in the commercial sector, 44% of respondents are unaware of the penalties proposed under the Act. If the defendant of the case being heard in Bristol Crown Court, Cotswold Geotechnical Holdings, is convicted then the minimum fine threshold of £500,000 will be tested. The firm has pleaded not guilty.

While fines and prosecution costs would not be covered by insurance, Gavin Reese, partner at Reynolds Porter Chamberlain, urged brokers to check the small print of their clients' cover to ensure that their defence costs would be met. He said: "A company may find they have cover in their employment or public liability policies but many don't. They need to check their policy wordings because there may also be limits financially, or by type of court."

The survey also showed that 81% of brokers had been contacted about the legislation by fewer than one-in-ten clients. Steve Foulsham, technical services manager at the British Insurance Brokers' Association, urged brokers to be active about keeping clients informed. He remarked: "There is an education process that is still required here; brokers should be talking to their clients about it at their annual reviews. It becomes a complex issue with the exclusions [in cover]."

Roger Ball, head of commercial motor and motor trade at Allianz Commercial, highlighted results showing over 20% of brokers estimate that, of clients that employ five or more staff, less than half hold an up-to-date, written down health and safety policy. He said: "This is a statutory requirement that can help businesses ensure they are not only meeting their health and safety obligations but also protecting themselves and their staff from potential accidents."

The case is expected to last six weeks and it is one that brokers should monitor closely (more details can be found at www.broking.co.uk/1564356).