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An insurance expert claims hauliers may need to review their cover as a result of the new Corporate Manslaughter and Corporate Homicide Act, which comes into force on 6 April. Brian Sullivan, transportation industry practice leader at Marsh Insurance, says firms should consider updating their policies to minimise the financial risk of any court proceedings. The Act creates the offence of corporate manslaughter and will see focus shifted away from the need to prove a single director or senior manager  guilty of serious personal neglect. Instead, the spotlight will fall largely on systematic failings, probably from collective serious errors by a company's senior management.

Sullivan says the main types of affected insurance will be public liability, employers' liability and fleet insurance. He adds: "Policies that hauliers currently have may not cover the defence of any legal action they could face as a result of the new Act. There is the potential for huge fines for breaching the legislation - a starting figure of 5% of a firm's turnover is being mooted." Prestons of Potto chairman Anne Preston says: "We have extensively reviewed our insurance requirements and extended our cover. We would advise others to do the same."