RAC Business Solutions has responded cautiously to the government's proposal to introduce a new offence of "corporate killing".
As reported by Insurance Times yesterday insurers could increase directors' and officers' (D&O) premiums by 15%, as a result of the proposed tighter corporate governance laws.
The RAC is concerned over the lack of communication by the government about the effectiveness of existing legislation.
Allen Bewley, head of RAC Risk Management, said: "The government has said for some time that it was committed to reforming the law to reinforce corporate liability for manslaughter.
"Directors can already be prosecuted under existing health and safety legislation but at present a "controlling mind" has to be shown to be guilty of manslaughter, meaning that smaller firms are more easily found liable than larger ones.
"There is a very strong perception held by companies that the existing legislation doesn't touch them. For example, RAC's Report on Motoring this year revealed that only 59% of companies even have a road safety policy in place."
