Are you covered?
Companies involved in pollution-related incidents could find their public liability or property insurance will no longer pay for the damage, a Shropshire insurance broker has warned.
Dave Williams, from Henshalls in Newport and Shrewsbury, said UK legislation has become "sufficiently tight" to render many general liability policies unsuitable for damage to the environment.
And he urged companies to seriously consider taking out new, specialist environmental liability protection if they feel their trade makes them vulnerable to a potential incident.
Dave said: "Environmental liability first began to become a major issue in the UK around a decade ago, although it has been on the radar in America for around 20 years.
"Last year, the Government implemented the new EU Environmental Liability Directive designed to tighten regulation on pollution and emphasise the principle that the polluter pays for the impact of their actions.
"There have since been examples of companies releasing pollutants into watercourses, and finding their insurers refuse to pay the costs relating to a clean-up."
Henshalls is now offering specialist environmental liability cover which supports traditional manufacturing businesses as well as those using chemicals on site, such as hotels, dry cleaners, and companies based near protected habitats.
Dave said: "The green debate is a the forefront of the headlines, and will continue to stay there.
"In truth, few companies are immune to environmental liability. It's not just the big boys who are at risk - any company, large or small, should consider the issue, even if their only potential pollutant comes from an oil-fired heating system.
"The insurance market is developing rapidly in this area, and there are now a growing number of affordable policies available for all kinds of local companies."
