SMEs not ready for Corporate Manslaughter Act
Article Date: Jan 09 2008Only half of businesses in the UK are prepared for the Corporate Manslaughter Act, despite the introduction of the legislation on 6 April, say experts.
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.
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Now that the Corporate Manslaughter Act has come into effect (April 2008), all companies, including SMEs should be reviewing their health and safety policies. And companies employing remote or flexible workers should be aware that the Act affects employees working remotely as well as those following more traditional work patterns. So remote workers might have to carry out risk assessments on their premises and remote workers who use their own cars for businesses are also covered by the Act. So a view of health and safety policies in the light of the new Act would be wise.
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