Corporate manslaughter: Don't take the risk

Businesses are being warned to do more than pay lip service to health and safety in light of the first case prosecuted under the Corporate Manslaughter Act 2007, warns a major insurance broker

The legislation means employers can now be held personally liable if an employee is killed while doing their job.

The Crown Prosecution Service has authorised a charge of corporate manslaughter against Cotswold Geotechnical Holdings Ltd in relation to the death of employee Alexander Wright on September 5 2008.

Mr Wright, who was employed as a junior geologist, was taking soil samples from inside a pit which had been excavated as part of a site survey when the sides of the pit collapsed, crushing him.

Peter Eaton, a director of the company has been charged with gross negligence manslaughter and with an offence contrary to Section 37, Health and Safety at Work Act 1974.

Kate Leonard, reviewing lawyer, CPS Special Crime Division, explained:

Under the Corporate Manslaughter and Corporate Homicide Act 2007 an organisation is guilty of corporate manslaughter if the way in which its activities are managed or organised causes a death and amounts to a gross breach of a duty of care to the person who died.î

Mr Eaton appeared at Stroud Magistrates' Court on Wednesday 17 June. He faces charges both as an individual and on behalf of the company.

Mike Langton, Commercial Director of Jardine Lloyd Thompson UK Ltd, said: ìObviously there is no better defence against a conviction than a robust health and safety system that will prevent accidents in the first place.

ìHowever, despite your best efforts you may be faced with a conviction and Corporate Homicide insurance could provide you with vital assistance.

ìThe days of relying on the annual risk management survey from the insurance companies at renewal have gone.

ìBy working with your insurance broker to implement a fully comprehensive risk management system you can get reduced premiums.î

JLT Business Insurance Services provides insurance for Corporate Manslaughter.