Management liability cover for farmers offers essential protection
Farming is the most dangerous industry sector in the UK - unfortunately, workers are 18 times more likely to have a serious accident or be killed on a farm than in any other industry.
A farm package insurance doesn’t cover all of the risks:
Serious accidents do happen, and whilst a farm package policy will provide Employers and Public liability insurance as standard, no cover will be provided for legal defence costs or fees incurred in the event of an HSE investigation.
Dealing with the human consequences of a serious accident can be traumatic, and this stress can be further exacerbated by ensuing criminal charges. Having expert legal support in your corner at this difficult time is essential – which is why it is important to consider management liability insurance.
How Management Liability cover helps…
Management liability insurance provides a wide range of valuable covers relating to farmers personal liabilities, including legal defence costs relating to investigations and prosecutions, and some products will also cover the HSE’s Fee for Intervention (FFI).
What happens when it all goes wrong?……
A claim example brings home how serious the consequences can be when it all goes wrong:
- Fatal accident on farm – an employee stepped out of a building into path of tractor.
- A 17-year-old employee was driving at low speed
- Both driver and farmer were cautioned and interviewed by the police.
- The farmer was at risk of being charged with corporate manslaughter and the driver of death by dangerous driving.
- The Management Liability insurer’s legal team explained exactly what the procedure would be with the police and HSE
- Police interviewed client and employee under caution as did the HSE and the insurer’s solicitor attended all of these interviews.
- The insurer arranged representation at the inquest for the employee and client by two barristers
- An HSE prosecution subsequently followed under Workplace (Health Safety and Welfare) Regulations
- It was held that there was an unsafe system of work in that there was no traffic management system in place on the farm and then client was given a significant fine.
- The HSE imposed an improvement notice requiring barriers to be erected in front of all building exit doors where pedestrians could have access
- The HSE fee for intervention was £10,000 which was paid by the policy
- The legal costs of circa £48,000 were also covered
Management Liability cover provides peace of mind for a relatively small premium
Even though there was a fine to pay, the client felt the help offered by his insurer’s solicitors had provided invaluable support at this terrible time – illustrating why a relatively small investment in a specialist management liability policy (the premium can be as little as £250) is a wise investment that every farmer should consider.