Category: Social risk · Reviewed by Taylor Watts, Broker · New Business · Last reviewed 2026-06-10
The Modern Slavery Act 2015 (c. 30) is the principal UK statute on slavery, servitude, forced labour and human trafficking, and the source of the Section 54 transparency in supply chains duty.
Category: Social risk Also known as: MSA 2015, Modern Slavery Act, Transparency in supply chains Act Typical UK market form: Statute — referenced in D&O, EPLI and supply chain wordings Related concepts: Modern slavery insurance, Supply chain due diligence insurance, Forced labour insurance, Directors and officers insurance
The Modern Slavery Act 2015 consolidates and updates earlier criminal offences relating to slavery, servitude, forced or compulsory labour and human trafficking. It received Royal Assent on 26 March 2015 and came into substantive force on 31 July 2015. It created the role of the Independent Anti-Slavery Commissioner, established Slavery and Trafficking Prevention Orders, and — most relevant to corporate insurance — introduced Section 54, the transparency in supply chains provision.
For insurance purposes the Act matters in two ways. It defines the criminal conduct that may trigger investigations and reputational fallout against commercial organisations, and it imposes a publication duty that, if breached or contradicted, exposes directors to securities-style litigation, regulator correspondence and stakeholder pressure. It is therefore one of the most frequently named statutes in modern D&O renewal questionnaires.
The Act is structured in seven Parts. Part 1 consolidates the offences of slavery, servitude and forced or compulsory labour (s.1), human trafficking (s.2) and committing offences with intent to commit trafficking (s.4). Part 2 creates Slavery and Trafficking Prevention Orders and Risk Orders. Part 3 deals with maritime enforcement. Part 4 establishes the Independent Anti-Slavery Commissioner. Part 5 addresses victim protection (including the statutory defence under s.45). Part 6, Section 54 — the transparency provision — applies to a “commercial organisation” carrying on a business or part of a business in the UK that supplies goods or services with a total turnover of £36 million or more.
The £36 million threshold is set by the Modern Slavery Act 2015 (Transparency in Supply Chains) Regulations 2015 (SI 2015/1833). The slavery and human trafficking statement must set out the steps taken during the financial year to ensure that slavery and human trafficking are not taking place in any of the organisation’s supply chains or its own business. Statutory guidance from the Home Office, “Transparency in supply chains: a practical guide,” lists six suggested content areas (organisation structure; policies; due diligence; risk assessment; effectiveness measured against KPIs; training).
The statement must be approved by the board (for a body corporate), the members (for a limited liability partnership) or a partner (for a partnership), and signed by a director, designated member or partner. It must be published on the organisation’s website with a prominent homepage link. Failure to publish is enforceable by the Secretary of State through injunction proceedings under s.54(11), with contempt of court the ultimate sanction. Since March 2021 the government has operated a central registry for statements, although registry submission is voluntary at the time of writing.
The Act itself is not insurable conduct — the criminal offences in Part 1 fall squarely within deliberate-conduct exclusions of every D&O wording. What is insurable is the cost of responding to investigations, civil claims, regulatory enquiries and reputational fallout that flow from allegations.
D&O Side A/B/C wording typically covers investigation costs of directors and officers under formal enquiries by the Independent Anti-Slavery Commissioner, HMRC’s National Minimum Wage team, the GLAA or the Home Office. Defence costs against shareholder derivative actions alleging breach of Companies Act 2006 s.172 are also generally covered. EPLI responds to individual employment claims by workers who allege exploitation, unlawful deductions or whistleblowing detriment under the Public Interest Disclosure Act 1998. Crisis management policies and reputational risk products (Munich Re, Aon, Howden) fund PR firms, forensic accountants and specialist communications counsel.
Standard exclusions remove cover for criminal fines, restitution and disgorgement of profits where uninsurable as a matter of UK public policy. The LMA 3100 sanctions exclusion sits across most relevant wordings. Brokers should examine investigation triggers carefully — some wordings only respond once formal proceedings begin, while modern ESG-aware wordings provide cover from receipt of a notice of investigation.
The London market has tracked legislative developments closely. Since the 2018 Independent Review of the Modern Slavery Act (the “Frank Field Review”), underwriters have asked more detailed questions at renewal: copy of latest statement, board minute approving it, supplier audit methodology, modern slavery training records and any whistleblowing reports.
Lloyd’s syndicates writing primary D&O for £36m-plus turnover commercial organisations now treat absence of a published statement as a material concern. Higher-risk sectors (fashion and apparel, construction, agriculture, hospitality, fisheries, electronics manufacturing and care homes) attract premium loadings or sub-limited investigation cover. Insurance capacity is generally available but underwriters reserve the right to non-renew where reputational risk crystallises into adverse media coverage.
A UK food processing group with consolidated turnover of £92m failed to publish its s.54 statement for two consecutive financial years following a corporate restructure. A trade union complaint to the Independent Anti-Slavery Commissioner prompted Home Office correspondence. The board, advised by external counsel funded under the D&O policy, published a backdated statement set, commissioned an independent supplier audit and trained 1,800 staff. Defence and advisory costs of £180,000 were covered; the company avoided injunction proceedings.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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