Law firm Davies Arnold Cooper (DAC) said over 700,000 UK businesses were in breach of the new asbestos regulations, which came into effect on 21 May.
Over 58% of UK businesses (717,000 companies) failed to carry out an asbestos assessment of their business premises in anticipation of the regulations, revealed research conducted by the firm.
The responsibility to manage asbestos in the workplace falls on employers as well as property owners, although DAC said 6% of UK businesses believed it was not their responsibility to manage asbestos.
The research also revealed that 37% of UK companies had not heard of the Control of Asbestos at Work Regulations, representing over 460,000 UK companies.
DAC said only 26% of companies knew the date when the regulations came into force, while only 7% of businesses had maintained a record of where asbestos is located in their premises.
Fifteen percent of those businesses surveyed said they were not aware of any regulations regarding asbestos.
The cost of compliance with the new regulations has been estimated as high as £80bn, although the Health and Safety Executive placed the cost at less than £5bn.
DAC senior partner David McIntosh said both compliance and non-compliance would create acute business problems for hundreds of thousands of companies.
“The risk to business and to individual owners, directors and officers is not confined to the possibility of facing prosecution for what appears to be wide-spread disregard of these regulations, but extends to their abilities to carry on in business.
“Non-compliance will be a material consideration for prospective insurers and even compliance which identifies hitherto unknown asbestos will be of relevance in terms of insurability, whether or not the asbestos was previously dangerous to health.
“Property values are likely to be affected as well, and publicity regarding the existence of asbestos in premises is likely to lead to extra claims for compensation.”
