In a recent statement, The WA parliament has announced there will be a significant increase to penalties for businesses who commit safety offences. The increase was made to protect the safety of WA workers, which is a priority of the McGowan government. The increase aims to provide an incentive for businesses to comply with workplace safety laws, to ensure workers leave work safe and well.
The increased penalties
Directors and officers
For first time offenders, the penalty has increased from $250k and two years in jail to $550k and two years in jail. For repeat offences, the penalty increases from $312.5k and two years in jail to $680k and 2 years in jail.
First time offenders will face a $2.7mill fine; an increase from $500k. Repeat offenders face a $3.5mil fine, an increase from $625k.
This increase in penalty presents a significant increase in the risk for your business, should you encounter a serious safety incident. Therefore, it’s time to review your management liability insurance and directors and officers’ liabilities to ensure you are fully protected.
What is management liability insurance?
Management liability insurance is there to protect yourself and your business against the risks of running a company. Failing to have adequate insurance puts both your business and your personal assets at risk, putting your wealth and lifestyle on the line. It covers things like damages and claimant costs awarded against you, investigation costs, and civil fines are pecuniary penalties.
What are directors and officers liabilities?
Ensure your past, present and future directors are covered in the event of a claim alleging a wrongful act, with an adequate level of directors and officers liability insurance. This policy protects against claims including unfair competition, fraud, insolvent trading and manslaughter.
With the recent changes to penalties, it’s time to review your business insurance policies to ensure you and your business are adequately covered. Contact our insurance brokers at Carbon Insurance; we’re more than happy to conduct a review of your existing policies.