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Personnel Today

Insurers will not cover corporate killing penalties

by Personnel Today 14 Mar 2000
by Personnel Today 14 Mar 2000

Employers found guilty of the proposed new charge of corporate killing have
been warned they will be unable to rely on insurance to cover fines any they
incur.

The Law Commission’s proposed introduction of the offence is intended to
enable the prosecution of companies rather than their directors with no
guidelines or limits on the fines that could be imposed.

Companies can cover themselves against costs of representation at official
investigations by taking out corporate liability, or entity, insurance. But Reg
Brown, underwriter of Lloyds syndicate 602 RE Brown & Others, warns,
"Insurers will not respond to fines on the basis that to do so would be
contrary to public policy – a wrongdoer should not be entitled to indemnify for
the consequences of their own criminal actions."

Personnel Today
Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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