Corporate manslaughter convictions could soar under the new Corporate Manslaughter Act coming into effect on April 6, 2008.
The new law means UK companies responsible for work deaths, which may have previously escaped prosecution, could now face a criminal record and unlimited fines, if they do not tighten their health and safety practises.

The act will place greater responsibility on firms to ensure that they do this. Failure to do so could lead to a business being publicly named and shamed and fined up to 10% of its annual turnover should a death occur as a result of 'gross management failure'.

The new act says companies will fall foul of the act if 'the way in which senior management organises or manages their activities causes a person's death and this amounts to a gross breach of a relevant duty of care to the deceased'.

In 2006/07, 32% of all worker deaths were in the construction industry. Overall, 241 people died in the workplace during that period, according to research by the Health & Safety Executive.

Despite this, there have only been 34 prosecutions and just six convictions since 1992, according to the Crown Prosecution Service.

Tom Wylie, director in Aon's construction team, said: 'The good news is that the accident rate on Major Contractors Group sites has fallen by 45% over the past seven years but companies cannot afford to be complacent.

'If a construction company can demonstrate that effective health and safety procedures were in place and correctly monitored, this could decrease the likelihood of prosecution and mitigate the potential for employers' liability claims'.

Steps that companies can take to protect themselves include:

induction for staff/sub-contractors/visitors;
robust sub contractor management and procurement processes with health and safety records being a major criteria for selection.
proactive and visible health and safety managers to police the site;
visible signage for those working on the site and those bypassing the site,
supporting the Major Contractors Group initiative for a qualified workforce, including the Construction Skill Certification Scheme.

Companies can help protect themselves by:
1)Undertaking a gap analysis on their legal and regulatory compliance.
2)Checking directors and officers insurance policies to see if they are covered in relation to the new laws.
3)Add coverage for both the company and directors so the policy will pay for investigations and defence costs.