Companies may be well-advised to seek additional Directors' and Officers' (D&O) insurance in preparation for the new corporate manslaughter bill, it has been claimed.

Fees incurred while defending an allegation of management failure leading to the death of an employee may not be covered by existing D&O policies, according to small business adviser Bytestart.

The service cites research by specialist insurer Hiscox which found seven in ten small to medium-sized businesses believe they are more likely to be subjected to a claim following the introduction of the new legislation.

Callum Taylor, management liability underwriting manager, told Bytestart the bill may represent "another worry to add to the list of complex concerns and regulations that small businesses have to contend with in today's highly competitive environment".

He added that it is "easy to understand" why many directors are becoming "more nervous" in a general climate of increasing claims from regulators and investors.

The government previously expressed concern that the determination of liability recommended by the Law Commission could result in activities by junior members of a firm being included among those blamed on directors.