However, not all environmental damage is caused by pollution; it is possible for damage to be caused by general activities over time, rather than pollution arising from specific activities.
The Environmental Liability Directive (ELD) is applicable to businesses of all sizes (e.g. from small farmer, to transport operations, to major industrial undertaking). Operators found liable for environmental damage will be subject to significant remediation costs; in some cases even if there is only a casual link between the occupational activity and the environmental damage.
By implementing the “polluter pays principle” it is expected that the directive will result in a higher degree of environmental protection throughout Europe. In addition, the Directive also places a responsibility on operators whose activities have caused an imminent threat of environmental damage liable to take preventive action.
The potential financial implications of this new regulatory regime are significant. It is imperative, therefore, that EEF members are aware of the potential implications of this directive on their business and understand their responsibilities.
EEF, in partnership with Chubb Insurers, is hosting three ELD breakfast events during November in Sheffield (11th), Birmingham (12th), and Hook offices (18th).
Environmental insurers can, and do, provide indemnity against the liabilities that arise from the Environmental Liability Directive. However, these are new products and it is highly unlikely that traditional insurance policies will be adequate.
Indeed, many traditional insurance policies are unlikely to cover against existing regulatory liabilities. This point was starkly illustrated in the case of a company called “Bartoline” who, following a fire at their premises faced liabilities in excess of £700,000 as a result of Environment Agency action.
Bartoline found that their public liability insurance, which they assumed would provide them with the necessary compensation to deal with these financial liabilities, actually did not provide them with indemnity.
For more information on the ELD please download the simple guide attached or visit our ELD microsite.