Environmental Liability Directive Generates New Challenges For Companies in EU

KANSAS CITY, Mo., May 5 /PRNewswire/ -- In a newly published report, Lockton outlines a series of challenges facing manufacturers and other businesses from the European Union's Environmental Liability Directive.

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The Environmental Liability Directive is now law in EU member states, and is designed to hold companies financially responsible for preventing and remedying environmental damage causes by their businesses.  

The authors of the Lockton report, Lisa Humphrey, Matt Patiedl, and Maggie Moore, note that, "The lack of case law and loss information will make insurance carriers cautious about how broad and encompassing their coverage will be" for environmental risks.  

They add that member states are taking measures to encourage the development of appropriate financial security instruments like surety bonds, trusts, letters of credit, escrow agreements, corporate guarantees, and insurance policies for businesses to use as guarantees to cover their liabilities.  

The report explains that most EU countries passed the ELD into law exactly as it was presented.  However, other countries added to the directive, imposing more stringent requirements on local operators.  A matrix outlining these complex variations and the implications for businesses is available on request to the authors.  

The Lockton Environmental Liability Directive report is available online and through your local Lockton representative.  

About Lockton

More than 3,800 professionals at Lockton provide more than 15,000 clients around the world with insurance, benefits, surety and risk management services, offering an uncommon level of client service.  Since its founding in 1966, Lockton has grown to become the 10th largest insurance broker in the world.  Learn more at www.lockton.com

SOURCE Lockton