Liability insurance news - Waste company fined

A waste management company has risked increases to its liability insurance premium after receiving a fine for health and safety breaches.

The breaches, which related to a fire caused by unsafely stored chemicals at a Lancashire factory, were established following a 15-month investigation. At one point, the blaze was so bad that it caused the closure of sections of the M6 and M55.

In fining the company £150,000 the Health and Safety Executive issued a statement that is likely to be read with interest by the company's liability insurance provider: "This was a serious incident which had the potential to cause long-term environmental damage, as well as posing a risk to staff and members of the public. Any businesses handling hazardous waste must ensure that they have suitable procedures in place to identify, store and transport this type of waste.

"Adherence to these procedures and the permit conditions laid down by the Environment Agency help to ensure the risks of adverse reactions, and potential land, air and water contamination, are minimised."

Although the incident is likely to add to the business's liability insurance costs, it is also likely to lead to an improvement of safety standards for other businesses in the Lancashire area.