Latest News
Tempora mutantur nos et mutamur in illis - The times change, and we change with them.
We live in a fast paced world where things are constantly changing and sometimes we find it hard to keep up with those
changes. On this page we aim to provide you with details of changes which we come across and feel you may benefit from.
Such information may not directly relate to insurance matters but is provided as general information.
We also issue a regular newsletter
which again contains articles of general interest as well as details of specific insurance facilities we are
able to provide and any offers or promotions we are running. If you would like to subscribe to our newsletter
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Director's Liability: First Company manslaughter case
In April 2009 a Gloucestershire company was accused of gross negligence in connection with the death
of a geologist on a building site near Stroud, in Gloucestershire, in September 2007. A director of the
company, was also accused of gross negligence manslaughter over the incident. If found guilty, he could
face a life sentence. The company could face an unlimited fine. Both the company and its Director are
also facing charges under health and safety rules. It is the first prosecution brought under the Corporate
Manslaughter Act 2007, which came into force in April last year. The case is a clear warning that
authorities are taking particular concern into health and safety issues. If you require more information
on Directors & Officers Liability cover, please contact our office to discuss your requirements or complete our enquiry form and one of our team will be happy to assist
you.
Increased fines and greater sentencing for those who breach health and safety legislation.
The Health and Safety Offences Act 2008 which came into force in January 2009 created no new legal duties.
However it has increased penalties and provides courts with greater sentencing powers for those who break
health and safety laws.
Read More...
The maximum fine which may be imposed by a Magistrates Court increases from £5,000 to £20,000 for most health
and safety regulations; for breaches of the 1974 Act itself, the maximum fine for breaches of sections 2-6
remains at £20,000.
The HSOA makes imprisonment an option for a broader range of offences in both Magistrates’ and Crown courts.
Further information : http://www.hse.gov.uk/press/2009/e09011.htm
Employee Tax - Benchmark scale rates for day subsistence
HMRC have introduced an advisory system of benchmark scale rates which employers can use to make subsistence
payments to employees who incur allowable business travel expenses free of tax and NICs. The new system came
into effect from 6 April 2009.
Further information : www.hmrc.gov.uk/briefs/income-tax/brief2409.htm
Recycling of old I.T. and Office Equipment
It is now a legal requirement for all UK companies to ensure that computers, monitors, batteries, TVs, fluorescent tubes, fridges and Waste Electrical & Electronic equipment be disposed of in accordance with Environment Agency standards
Further information : http://www.environment-agency.gov.uk/business/topics/waste/32084.aspx
Ten reasons why insurance rates have to go up
Premiums for motor and household have increased over the last year, but these increases were not significantly
above inflation, leaving insurers out of pocket. Click here for
10 reasons why insurance premiums need to rise now
Source: AXA Insurance Professional magazine July 2009
Archive
Intruder and Fire Alarm signalling problems
BT is planning to make significant changes to the telecommunications infrastructure which could
cause serious disruptions to the signaling capability of many intruder and fire alarm systems.
It is expected that, without corrective action being taken, many thousands of alarm
communication devices could be disabled as a result of these changes.
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21CN is BT's next generation telephone/data network, an internet protocol based network that will
replace the Public Switched Telephoned System (PSTN) and most other line-based telecommunication
including the existing Broadband infrastructure and Integrated Switched Digital Network (ISDN).
The new network will offer a variety of benefits for customers in terms of services and value.
However, older generations of communications equipment (for example certain types of digital
communicator used for alarm transmission) are not necessarily compatible with the new technology,
and it is anticipated that many will fail to perform correctly following conversion of the local
telephone exchange to 21CN.
The main migration programme will not start until April 2010, but a pilot exercise is due to
commence in October in the Cardiff area. The pilot will involve some 75,000 telephone lines,
about 4,000 of which are thought to be connected to fire or intruder alarm systems.
Ongoing impact of the 21CN network on alarm transmission equipment
Assurances have been received from the suppliers of higher specification signaling products (e.g.
Redcare and CSL Dualcom) that their systems are 21CN-compatible and will continue to perform
correctly post-migration.
The main concern appears to be the large number of older digital communicators still in use. It is
thought that up to 40% of the communicators currently installed in the UK will be unable to perform
correctly on the new network. This would mean that hundreds of thousands of alarm systems will need
to be updated prior to the 21CN mass migration programme to ensure viability on the new network.
Guidance
It is possible that the commencement of the migration pilot in Cardiff will raise awareness of the
potential alarm signaling problems amongst policyholders. A recommendation in this event is that
policyholders with intruder or fire alarms that signal via a digital communicator should:
- Raise the issue with their system installers and insist that, if they have not already done
so, the installer provides them with a written statement addressing the exposure of their
installed signaling equipment to problems arising from connection to the 21CN network, and
the action that the installer has taken, or expects to take, to mitigate any such problems
- Request that their system installer checks in conjunction with the Alarm Receiving Centre
that their signaling equipment is working correctly immediately after migration has been
completed (and not wait until the routine maintenance visit for this check to be made)
- Ensure that any proposal to change the type of signaling system deployed is agreed
with the relevant insurer
Plant theft is estimated at £ 1,000,000 a year
If you are worried about the loss of your plant, you may be interested in the Construction Equipment
Security and Register (CESAR).
Read More...
CESAR was established by the Construction Equipment Association (CEA) and operates jointly with the
Metropolitan Police National Plant and Agricultural Unit, which was established in October 2008.
Together the National Plant and Agricultural Unit and CESAR are having a positive affect on plant
crime with recovery rates of stolen equipment up 3%, including some significant halls with insurance
values of £250,000.
CESAR works by covertly and overtly micro chipping machinery, thus making it difficult for thieves
to remove all identifying data. All the details from the chips are logged on a central database to
help police link recovered machines to their rightful owners. So far 18,000 pieces of equipment
across the UK have been micro chipped under the scheme.
For further details of CESAR visit www.cesarscheme.org
Not only will CESAR offer you peace of mind but MasterPolicy in conjunction with Allianz can
negotiate discounts for insurance on equipment fitted with CESAR security.
Health & Safety Offences Act 2008
The Health & Safety (Offences) Bill was given Royal Assent on 16th October 2008 and comes into force in January 2009. The Act amends Section 33 of the Health and Safety at Work etc Act 1974, and raises the maximum penalties available to the courts in respect of certain health and safety offences
The Health & Safety Executive Chair Judith Hackitt said: "The new Act sends out an important message to those who flout the law. However, good employers and good managers have nothing to fear. In fact, they have much to gain."
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"I want to remind businesses that there are no changes to their existing legal duties and that important safeguards are in place to ensure these new powers will be used sensibly and proportionately.
"Our enforcement policy targets those who cut corners, gain commercial advantage over competitors by failing to comply with health and safety law and who put workers and the public at risk."
As the 2007 Corporate Manslaughter and Corporate Homicide Act (implemented in April 2008) targets rogue employers, the Health & Safety (Offences) Act 2008 is aimed at punishing individual employees. However, unlike the Corporate Manslaughter and Corporate Homicide Act the breach of health and safety rules does not have to result in death.
The Act was introduced as a Private Members Bill amid concerns among MPs that existing punishments for individuals who breach health and safety laws were too low.
Presently a director/manager would have to be charged with gross negligence manslaughter to be sent to prison where the sentence would typically be 18-24 months. This Act will change that, and death does not need to have occurred. Prosecutors only have to prove a breach of health and safety.
Summary of current and new penalties under the Act
Current
- £5k or £20k for summary offence in lower courts, depending on offence; unlimited fine for indictable offence;
- imprisonment not available for most offences (but up to 6 months in magistrates court / 2 years in Crown Court for few offences eg failing to comply with a prohibition notice or breaching a licensing requirement).
New
- £20k fines in lower courts for nearly all summary offences, unlimited fines in higher courts;
- Imprisonment for nearly all offences - up to 12 months Footnote 1 in Magistrates Courts and 2 years in the Crown Court.
There are strict guidelines which are observed by the regulators in their approach to the prosecution of health and safety offences. The HSE Enforcement Policy Statement. makes it clear that prosecutions should be in the public interest and where one or more of a list of circumstances apply. These include:
- where, death was a result of a breach of the legislation;
- there has been reckless disregard of health and safety requirements;
- there have been repeated breaches which give rise to significant risk, or persistent and significant poor compliance; or
- false information has been supplied wilfully, or there has been intent to deceive in relation to a matter which gives rise to significant risk.
1. To be read as a reference to a term not exceeding 6 months until the coming into force of section 154(1) of the Criminal Justice Act 2003. At present, there are no Government plans to “switch on" this clause.
Employers' Liability Insurance
With effect from 1 October 2008, employers will no longer be required to retain their employers' liability insurance certificate for 40 years. Also, rather than displaying physical copies of the current certificate on notice boards, employers can now make the certificate available electronically, provided it is reasonably accessible to relevant employees.
Maternity Leave
Currently pregnant women are entitled to take 52 weeks maternity leave, and they are not allowed to work for the first two weeks after birth.
The rules on contractual benefits during maternity leave have now changed. If the baby's due date was before 5 October 2008 employers must continue to give any contractual benefits (eg gym membership) during the first 26 weeks maternity leave only (ordinary maternity leave).
However, for babies due on or after the 5 October 2008, employers must continue to provide these benefits throughout the total maternity leave (including additional maternity leave).
National Minimum Wage
From the 1 October 2008, the new National Minimum Wage Regulations for different groups of workers are as follows:
- 16 - 17 year olds - The development rate for 16-17 years olds increases from £3.40 an hour to £3.53 an hour
- 18 - 21 year olds - The development rate for 18-21 year olds increases from £4.60 an hour to £4.77 an hour
- 22 + year olds - The main rate for workers aged 22 and over increases from £5.52 an hour to £5.73 an hour
Theft of Metal from Buildings
Theft of metal from buildings is not a new problem. However, driven by demand, especially from developed countries, the international price of copper and lead has broken all records over recent months. This has led to an increase in the theft of copper, lead and other metals in all areas of the country. The rewards for thieves are high and they are becoming increasingly organised and bold in their attacks, often posing as builders legitimately working on property. Putting aside the irreplaceable loss of heritage when listed buildings are attacked, the financial loss arising from thefts goes beyond the cost of replacing the stolen metal. Damage to the fabric of buildings caused during the course of the theft can be significant, as well as water damage to internal furnishings if it rains before the theft of roof coverings is discovered.
Read More...
Here is some practical advice on how to prevent theft of materials:
-
Maximise surveillance levels
- Consider pruning tall trees which could screen criminal activities. (You may need local authority approval.)
- Introduce security lighting.
- Consider installing a CCTV system; display warning notices around the site.
- Install external intruder alarm protection to roof areas and any scaffolding.
-
Community support
- Encourage members of the local community to keep an eye on the building.
- Access to site
- Gates should be locked and vehicular access restricted.
- Remove any means of transporting stolen goods, eg wheelbarrows, wheelie bins.
- Store ladders in a secure place and remove any easy access onto roofs.
-
Roof checks
- Carry out regular checks, so any theft of roofing materials is discovered before it rains and water enters the building.
-
Anti-climb paint
- Apply anti-climb paint to drain pipes and roof guttering.
-
Smartwater security marking
- Smartwater forensically links thieves to crime scenes. Warning notices are an effective deterrent.
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Building work and renovations
- Try to erect scaffolding only where it is needed for a particular phase of work.
- Corrugated iron sheeting or solid timber boarding should be bolted to the base of the scaffold to a height of 3.5m.
- Remove ladders to a secure place at the end of each day.
- Erect temporary security fence panels around the work site at a height of at least 2m.
- Advise the local police that building work is being carried out.
Managing health and safety - new responsibilities for employers
The Corporate Manslaughter and Corporate Homicide Act introduces a new offence, across the UK, for prosecuting companies and other organisations where there has been a gross failing, throughout the organisation, in the management of health and safety with fatal consequences.
Read More...
