Novae launches corporate killing D&O policy

Novae Insurance Company has launched a new directors' and officers' (D&O) liability policy to coincide with changes in the law relating to deaths in the workplace.

The Corporate Manslaughter and Corporate Homicide Act 2007, which came into force in April, provides that action for manslaughter can be brought against a company if health and safety failures result in a person's death. Previously, charges could only be brought by identifying and prosecuting an individual with a ‘directing mind’.

Novae said its new policy caters for the change in legislation by providing defence costs for cases of corporate manslaughter. According to the insurer, it also benefits from providing two specific towers of cover for Entity and D&O (covering both the company and the individual), both of which have separate limits of cover. In addition, both limits include specific Employment Practices Liability.

Jon Morgan, Novae's Insurance's regional unit head of financial lines for the UK and Ireland, said: ‘This policy is aimed at privately-owned limited companies with a turnover of up to £100m. Owing to strict UK and EU regulations, directors' and officers' personal exposures have become extensive.

‘Research shows that many companies with a turnover of up to £100 million will remain without cover. The risks for directors and officers are wide-spread with many believing that limited liability status will protect them from being sued. It won't.’