Biba is to launch a scheme to cover businesses' environmental liabilities in response to a forthcoming European Directive.

It comes as the Department for Environment, Food, and Environmental Affairs completed its first round of consultations on the forthcoming Environmental Liability Directive.

The Directive, which is due to become UK law on 30 April, will extend companies' liability for environmental damage. Biba head of technical services Peter Staddon said the Directive would lead to a range of issues which existing liability policies may not cover.

The first in a series of schemes will be established in partnership with Manchester based Bridge Insurance Brokers.