The ACE European Group has issued a 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.”
ACE explained that many UK businesses seem to have only a “limited understanding of the increased liabilities they face in light of the European Union’s Environmental Liability Directive.” This in turn means they’re also largely unaware of the “cover available” for such risks and continue to rely on “existing liability insurance covers to offer adequate protection.” As a result they are exposed 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,” said ACE. “The culmination of all these factors has serious consequences for UK businesses.”
Karl Russek ACE’s Senior VP-Environmental Risk explained: “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 program. The insurance industry needs to focus on highlighting the specific benefits of dedicated environmental liability cover to help businesses.”
Source: ACE European Group
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