Leading insurer ACE European Group (ACE) is warning that UK businesses are exposing themselves to unnecessary environmental liability risks, simply because they continue to view specialist insurance products as too expensive and overly complicated.
Alongside a limited understanding amongst many UK businesses of the increased liabilities they face in light of the European Union’s Environmental Liability Directive, a lack of awareness of the cover available and a reliance on existing liability insurance covers to offer adequate protection are exposing businesses to unnecessary risks.
A recent survey conducted for ACE amongst European risk managers also found that 1 in 10 major businesses expect to face an Environmental Liability loss each year.
The culmination of all these factors has serious consequences for UK businesses. Karl Russek ACE’s Senior Vice President, Environmental Risk explains: “Companies should not simply rely on their existing liability covers to provide the protection they need in the event of environmental damage clean up operations. In doing so they are exposing themselves to potentially significant losses.”
“The fact is that specialist environmental cover is now available for large and small businesses alike. In the case of the SME market, this cover is both extensive and affordable and can be provided as part of an existing liability and commercial package insurance programme.
“The insurance industry needs to focus on highlighting the specific benefits of dedicated environmental liability cover to help businesses.”
ENDS
Notes to Editors:
ACE offers a full range of environmental liability insurance solutions. In June 2006, the company launched a Package Pollution Liability cover designed to make it easier and less costly for small and medium sized companies to manage their environmental related risk and liabilities. The package provides cover across a number of areas that are critical to small and medium sized businesses, such as damage to third party property, and coverage for sudden and gradual pollution. Other areas included in the package provide coverage for on-site and off-site first-party cleanup and automatic coverage for biodiversity damage.
ACE Environmental Risk offers a range of environmental liability solutions from traditional risk transfer to bespoke programmes. Specific products include:
Premises Pollution Liability (PPL): claims made policy offering a range of cover for gradual, sudden and accidental pollution resulting from the ownership, control and/or operation of premises.
Contractors Pollution Liability (CPL): Offering pollution (gradual and sudden and accidental) liability protection to insured contractors and subcontractors.
Contractors Pollution/E&O – a package policy designed for environmental contractors and consultants who derive the majority of their revenue from services.
Remediation Cost Cap/Containment (RCC) - A stop-loss policy that provides the insured with protection against cost overruns resulting from a pollution clean-up project. The policy is intended to protect against the uncertainty involved in undertaking a redevelopment project of a contaminated site and minimise the associated risks.
Package Pollution Liability ACE provides limits up to £5million for a broad range of protection including both first and third party coverages. It can be provided as an endorsement to existing UK liability covers and as a new section in commercial package policies from ACE.