The main provisions of the act will come into effect from 6 April; will mean that more companies will need to review their insurance policies. The legislation leaves companies facing unlimited fines following fatal accidents if there has been gross failure by senior managers. A standard Directors' and Officers (D&O) insurance policy will only provide cover for a senior individual but will not cover the costs of the company's defence. The legislation could lead to companies facing prosecution for breach of their duty in areas not previously considered. An example could be a company's failure to ensure its employees cars are kept in a roadworthy condition when being used in the course of their employment, even in cases where employees are using their own vehicles.
FPB