Management Liability, OH&S, Trades
Electrician
5 staff
$8M turnover
Payment: $450,000 fine plus, $100,000 in defence costs
Background
An employee electrician contracted by the insured electrical contracting company was inspecting wiring on a building site. During the inspection, the contractor suffered severe electric shock whilst inspecting the wiring. It was later discovered that certain precautions were not followed on site. The employee was left with severe burns to his right arm and face. The insured company was subject to a formal Occupational Health and Safety investigation and prosecution.
Outcome
It was determined that the Insuring clause of the Policy was triggered and indemnity was extended to the Insured. The company vigorously denied and successfully defended the most severe allegations allegations. Despite their attempt at defending the claim, the company was fined for the negligent actions of their employees.
Payment: $450,000 fine plus, $100,000 in defence costs
Management Liability, OH&S, Trades
Plumber
9 staff
$11M turnover
Payment: $120,000 fine plus, $130,000 in defence costs
Background
A team of 3 plumbers were contracted to attend an industrial building site in Western Australia to undertake certain tasks in the overall building project. The team consisted of new recruits who were new to the job. Unfortunately, on the first day of the project, two of the novice electricians were seriously injured. One contractor suffered a deep laceration on his hand whilst the other contractor lost partial hearing in his left ear due to failing to wear the safety equipment correctly. A formal Occupational Health and Safety investigation began which eventually led to the company being prosecuted.
Outcome
It was determined that the Insuring clause of the Policy was triggered and indemnity was extended to the Insured. Following a two day hearing, the company was found liable and was fined.
Payment: $120,000 fine plus, $130,000 in defence costs
For more information contact www.newcastleinsurancegroup.com.au
Crime, Management Liability
Project Management Company
8 staff
$6.2M turnover
Payment: $80,000
Background
Over a period of 9 months, an employee of the insured project management company misappropriated $80,000 of their employer’s money by pocketing cash received from Clients in payment of their invoices billed (via EFT transfers). The employee had a gambling problem and admitted to stealing the funds. The employee was prosecuted by the police and was unable to pay the stolen funds back to their employer as the funds were gambled away.
Outcome
With the assistance of an crime investigator, the insured was able to prove the loss of $80,000 and was then able to claim this from back from the insurer.
Payment: $80,000
Trades, Management Liability
Landscaper
20 staff
$15M turnover
Payment: $114,000
Background
A large gardening business sued the owners of a small family owned gardening and horticultural company for $445,000 after its retail manager left to join the insured business. The competing company alleged theft of trade secrets and claimed that the retail manager was still in their employment when they began sharing proprietary information with the Insured.
Outcome
It was determined that the Policy was triggered and indemnity was extended to the Insured. The claim proceeded to hearing and was settled at mediation.
Payment: $114,000
Management Liability, Trades
Electrical Contractor
9 staff
$10M turnover
Payment: $410,000
Background
A Managing Director of a medium sized electrical contracting company left to become the CEO of a competing company (the Insured). After 3 months, his previous employer sued him for allegedly stealing trade secrets, confidential business information and employees.
Outcome
Proceedings were initiated against the Managing Director in the Federal Court for damages. The Insured incurred over $200,000 in legal costs to defend the claim. The parties ultimately settled the dispute for $210,000 with the former Managing Director agreeing to not disclose any confidential information and to not hire former employees.
Payment: $410,000
