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FACING UP TO ENVIRONMENTAL RISKS
The Environmental Liability Directive (2004/35/CE) was issued by the European Union in order to create a new liability regime for the prevention and remedy of environmental damage. This was incorporated into English Law on 1st March 2009 and also applies to Wales.
Here are some commonly asked questions.
Q. Doesn't my liability insurance policy cover pollution?
A. Most liability policies offer very narrow sudden and accidental coverage with no protection for clean-up of contaminated soil and water. Most pollution incidents occur gradually and would therefore not be covered by your liability policy.
Q. I don't handle hazardous chemicals, so how can I be affected?
A. All businesses are exposed, either due to current operations or activities on the property in previous years. There is no way you can be certain what took place in your property or on the land in the past and the new legislation makes the current occupier or owner responsible.
Q. If there is pollution on my own site, who can make me do something about it?
A. Regulatory authorities such as the Environment Agency or Local Authority have wide ranging powers under the new legislation for finding and assigning responsibility for pollution. They can also charge you for the cost of investigation even if no pollution is discovered. Once it is identified, remediation will be robustly enforced and could result in significant investigation and clean-up costs.
Q. What if a previous business or tenant caused the pollution?
A. The law now means that current occupiers/owners of the premises can be held responsible for pollution on their land even if this pre-dates their occupation/ownership where the previous occupier/owner no longer exists.
Q. Once I sell or let the premises does my liability cease?
A. No. If it can be shown the pollution occurred under your occupation or ownership then you can still have a responsibility. Therefore, when you are in negotiations to sell or lease your premises it is likely that such issues will be identified during the transactional due diligence process, and indemnities may be sought.
Q. How do I protect myself against £750,000 damages as awarded in the Bartoline court case?
A. Reich have a product specifically designed to cover both future and retrospective pollution not yet discovered. It can cover your own land and buildings as well as protecting you against escape of pollution from your premises contaminating third property land and buildings including soils, ground and surface waters, protected species and natural habitats.
To get your no obligation quote contact Rob Naylor or Nick Symes on 0161 834 8877.
T: +44 (0)161 834 8877
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