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.”
Russek says the insurance industry needs to focus on highlighting the specific benefits of dedicated environmental liability cover to help businesses.
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