Half of UK businesses are in breach of the new asbestos regulations that came into force last month, Cunningham Lindsey said.
Research carried out by the loss adjuster showed that 50% of firms were ignorant of the Control of Asbestos at Work regulations.
Meanwhile, only 25% of businesses were compliant.
Cunningham Lindsey risk solutions manager Justin Martin said companies were unaware that non-compliance with the regulations could have serious consequences.
"Companies should understand that failure to comply leaves you in breach of the law and potentially facing prosecution," Martin said.
"It may also affect your relationships with underwriters, especially when purchasing employers' liability insurance.
"The ability to demonstrate that you have completed an asbestos risk management plan and implemented suitable controls to eliminate or minimise the risk of exposure to fibres to your staff and others will make you a much more attractive prospect as far as the insurer is concerned."
