Do You Have Insurance Against Workplace Claims? You Could Be Hit With A $125,000 Penalty

The recent amendments to NSW WHS laws create new offences and harsher penalties for businesses.

Any business that enters into, provides, or benefits from insurance or indemnity arrangements for liability for a monetary penalty for a WHS offence (WHS Act, Section 272A).

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Ask ISOsafe - Call Now 1300 789 132 〰️

While there is no such prohibition in respect of indemnity for legal costs associated with a potential WHS breach or enforceable undertaking this is a big change.

In essence, businesses and employers cannot enter into arrangements to protect or indemnify themselves or individual Managers, Directors or Officers against monetary penalties under the laws.

The maximum penalty for businesses entering into an insurance or indemnity arrangement is $125,000.

Are you worried your Health and Safety is not compliant? Call ISOsafe today on 1300 789 132 to get better Health and Safety advice, training and documentation for your business.

New WHS Legislation Changes June 2020 – Greater fines and easier to prosecute against WHS offences

Directors & Officers (D&O) Liability Insurance - SLI and EPL coverage changes against WHS offences
SLI/EPL Insurance Changes

There has been an overhaul of the NSW Work, Health and Safety Laws in June 2020. The essence of these changes is to improve workplace Health and Safety and to reduce workplace death in NSW. The Work Health and Safety Amendment (Review) Act 2020 which came into effect from June 10, includes the following changes:

1.       It is now easier for businesses to be prosecuted for Category 1 offences. Previously, the prosecutor had to prove ‘recklessness’ by the duty holder, which was difficult to prove. These changes have dropped the bar to ‘Gross Negligence’. This change creates a stronger incentive to duty holders to manage WHS risks. Category 1 offences carry a maximum penalty of $300 000 for an individual and/or five years imprisonment, and for a corporation $3 463 000.

2.       Insurance and Indemnity arrangement for WHS penalties and fines are now illegal. For anyone who currently does have such insurance, the insurer will be prohibited from paying out under existing policies.

3.       Penalty amounts for WHS offences have all increased. Furthermore, they will continue to increase with Consumer Price Index every year in order to ensure that penalties retain their deterrent value. There were significant increases to the following penalties:

·       penalties for category 1 offences have increased to $3,463,000 from $3 million

·       penalties for category 2 offences have increased to $1,731,500 from $1.5 million

·       penalties for category 3 offences have increased to $577,000 from $500,000.

It is now vital more than ever to show that you have done everything you can to mitigate the WHS risks in your business. Ultimately, these laws have changed to make prosecution for WHS offences easier for the regulators. It’s all about keeping your staff and business safe. It is very important that you are not seen to be negligent if things go wrong. ISOsafe are specialists in WHS compliance, advice and training. If you would like a review of your WHS systems and workplace to ensure that you are doing everything you can to manage the WHS risks of your business; call ISOsafe on 1300 789 132.