After one employee died on the job, employers liability insurance holders of two companies have recently been slapped with a £440,000 fine.
An employee caught fire and died when he was crushing aerosol cans in 2005. 37 year old Mark Wright had been doing work on behalf of Deeside Metal Company and Jeyes UK Ltd. Both companies will now face higher professional indemnity insurance rates thanks to the fatal accident and hefty fine.
Both companies were prosecuted by the Health and Safety Executive for failing to have restrictions in place in order to manage flammable materials. Jeyes UK Ltd bears £330,000 of the fine. Additionally it is to pay £50,000 in costs for its breach of the 1974 Health and Safety at Work Act.
Deeside Metal Company was also found guilty of breaching the Health and Safety at Work Act. It was additionally found to breaking 1999 Management regulations as well. Its share of the fine was £100,000 in addition to costs of £10,000.
One Deeside Metal manager was also included in the charges. Mr Robert Roberts was assessed a fine of £10,000 for his role in the fatal accident.
In addition to the regrettable loss of Mr Wright’s Life, both Deeside and Jeyes UK now face further troubles. The business liability insurance premiums for both companies will surely rise at the very least. They now may also be subject to personal injury claims filed by Mr Wright’s surviving family members as well.
Industry experts agree that simple risk assessment strategies could have made the accident an avoidable one. While many companies neglect to institute health and safety regulations due to a reduction in their profit margin, hefty fines and legal costs can quickly do more damage to a company’s bottom line.
In related news, the Health and Safety Executive stated that during the 2009-2010 financial year seven workers succumbed to fatal injuries.