Hiscox has called on businesses to review the risk management procedures which they already have in place as they may not be able to provide adequate protection once the law comes into force.
The insurance company has estimated that the new act could cost businesses an estimated £20 million in legal fees.
Callum Taylor, management liability underwriting manager at Hiscox, says: ‘With less than 100 days to go until the Corporate Manslaughter Act comes into force, companies could face prosecution for breach of their duty in areas they have not previously considered.’
The new law could hold executives to account if corporate negligence results in a fatality at work.
Criminal convictions and unlimited fines could be faced by businesses if a failure by managers has been proved to be responsible.