How are HSE fees typically treated by company insurance?

HSE fees, which refer to the financial penalties or costs associated with Health and Safety Executive (HSE) enforcement actions, are typically not covered by company insurance. This is because such fees are regarded as governmental penalties rather than the type of insurable risks that insurance policies are meant to address. Insurance policies are designed to cover liabilities arising from accidents, personal injury claims, or property damage rather than fines or penalties imposed by regulatory bodies.

HSE fees are intended as a deterrent to encourage compliance with health and safety regulations, and covering them through insurance would undermine this purpose. Companies should therefore account for potential HSE fees as part of their operational risks and ensure they implement strong health and safety management to mitigate such liabilities effectively.