Managers at risk of being sued

A lack of awareness of the dangers of not having adequate directors and officers (D&O) liability insurance is costing the construction industry dear, according to Liverpool-based Powell Insurance Brokers.
D&O provides protection against claims brought against individuals rather than the company they own, run or work for.
Director Elliot Powell told CJ: "When a calamity occurs in construction someone must be called to account.
"The wide-ranging commercial and managerial pressures on decision-makers means that it is almost impossible to oversee all activities that a manager will influence on a daily basis.
"This fact will increase the risks and expose many to the possibility and consequence of litigation," he said.
"To defend a serious health and safety charge can cost anything up to £250,000.
"In the case of corporate manslaughter you could easily be looking at costs of between £500,000 and £1m."
D&O is not compulsory and, although it has been available for the past 10 years, take-up is still only 50% of companies.
Powell blamed a lack of publicity, especially as D&O is a fraction of a company's total insurance portfolio costs.
"Perhaps more than any other sector, senior officials in the construction industry face considerable risks," said Powell.
"The health and safety and risk appraisal responsibilities that rest with management teams are so cumbersome and varied that one oversight that leads to, or contributes to, a serious incident on site may result in a manager being personally prosecuted by a number of regulatory bodies," Powell said.