RISK MANAGEMENT 21
Providing a bridge over troubled waters...
But with the HSE’s moves to toughen existing the client and insurer. that they are well placed to work in tandem
law and move towards increasing openness with either the brokers own risk management
and transparency, other sectors are shifting There are, moreover, a number of D&O covers team, the insured’s appointed health and
into the spotlight. This means, of course, that now offer protection for the new Act but safety consultants or the insured’s own health
that knowledge of new legislation and H&S many are limited and there is little consistency and safety manager.
requirements, as well as how insurance can of approach from underwriters. With personal
mitigate the risk, become an even more legal representation for a director on a As well as insurance cover Fusion offers all its
important component of the advice you give complex corporate manslaughter case running customers a number of services to underline
your clients. as high as £200,000 or more, brokers will need its deliberately different approach to other
to give detailed attention to wordings. Legal insurers. One such service is a health and
It is worth remembering that incidents that expenses policies will have a limit or sub limit safety management system which is simple
result in an investigation and subsequent and most liability policies will have an overall to use and provides an online process to help
prosecution will also impact on a linked civil limit but some have no sub limits at all for businesses in the management and control of
claim. So, from an insurance point of view, the these types of legal expenses. health and safety, including compliance with
establishing of fault arising from the criminal legislation.
investigation will play a major role in the Policy coverage is however only part of the
ability to control and protect a client’s position issue and Fusion believes that prevention is Comprehensive hazard lists allow the insured
on the civil claim. better than cure. to build an action plan to achieve compliance.
Checklists then help further to identify risk
In this context, it is vital, if legal representation Via risk management advice and guidance exposures which can then be controlled and
is covered under the policy, that insurers Fusion strives in conjunction with the monitored by risk assessments also held in the
are in a position both to control the costs appointed broker to outline to the insured the system.
and ensure that the solicitor instructed is a issues they face and the need to have a robust
specialist. This is further complicated when the health and safety system in place which is Putting the customer first, all brokers need to
prosecution is directed both at the corporate constantly reviewed. pay meticulous attention to both the source
entity and the directors as individuals. If faced and limits of coverage and ensure that the
with the prospect of a custodial sentence it is Quite often the insurance company survey policy or raft of policies responds in the
not unlikely that each officer of the company is seen by some as a hindrance rather than appropriate and most cost effective way.
will look for independent legal advice. a benefit. Even where the insured employs
external consultants, policyholders should The good news for brokers is that the
Coverage for these legal costs can expose an recognise the benefits to their company that a complexity of the issues should fire a warning
underwriting maze. The three main sources fresh pair of eyes can bring. shot across the bows of commercial customers
of cover: Liability (stand alone or wrapped who are thinking of entering these troubled
within a commercial combined) directors’ and All Fusion risk managers have many years waters without expert advice.
officers’ (D&O) and personal legal expenses, experience with most have National
have potential for overlap and conflict which, Examination Board in Occupational Safety and
in turn, will have a bearing on cost both for Health (NEBOSH) qualifications, which means
February 2010 Insurance Brokers’ Monthly
Risk Management 20-21.indd 2 1/2/10 13:48:04
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