There is a major shortfall in environmental liability cover in the UK, says Ace.
Brokers and insurers should be encouraging clients to understand their obligations under the EU's Environmental Liability Directive, according to Karl Russek, senior vice-president of environmental risk at Ace.
Russek 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 programme.
“The insurance industry needs to focus on highlighting the specific benefits of dedicated environmental liability cover to help businesses.”
