There is a Directive will punish businesses that are negligent in environmental care. The Environmental Liability Directive is a European Directive that seeks to prevent and remedy environmental damage. The Directive has been sent out as individual regulations from the Governments of England, Wales, Scotland and Ireland.
It forces polluters to prevent and remedy ‘environmental damage’ caused by their activities. It applies to:
- Serious damage to EU protected species and habitats or damage to Sites of Special Scientific Interest (SSSI).
- Serious damage to water.
- Land contamination that adversely affects human health.
Businesses are under a major threat as any spillage, either accidental or gradual, must be rectified through a clean-up process – which has to be paid for by the polluter, often at great expense. Insurance companies will only cover accidental damage at best, so if you run a factory and you have an accidental or sudden spillage your policy should cover it. Most insurance companies will not cover gradual spillage, so if you are leaking toxic material into land, water or protected habitats you could be liable for a large financial outlay that is not covered by your policy. Alison Bellamy from Walmsleys Commercial Insurance states, “We have just helped a business who would have been caught out with this Directive if they would have stayed with their incumbent Insurer. We have the ability to quote online in real time for any losses, including gradual leakage”. Other people affected by the Directive are private businesses, public sector enterprises – schools, hospitals and government departments or agencies and voluntary or privately organised activities.
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