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.
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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."
