The key to our business model is collecting, evaluating, and providing information on all material environmental risks, the relationships among the various parties involved, and the goals and objectives of those we insure. This helps us obtain the optimal terms and conditions from insurers.
How we work
Using a multi-disciplinary approach comprising engineering, legal and risk management, we help identify environmental exposures and assess liability potential.
The European Union Environmental Liability Directive
The implementation of the Environmental Liability Directive is an example of new regulations creating new exposures for business.
The Environmental Liability Directive (ELD, 2004/35/EC) is a legislative act of the European Union creating new and significant potential liabilities for costs, damages and losses for operators and companies regulated by the ELD. All EU members have now adopted the ELD into their national laws, making compliance unavoidable for companies operating in EU member states, regardless of where they are headquartered.
For more information download our Environmental Liability Directive business guide.
Environmental fines and litigation costs can be considerable, including time and resources.
Information on ELD costs are gathered on an ad-hoc basis because Europe currently does not have a central database to track ELD loss and damage. However, while it's still too early to confirm, the costs associated with Natural Resource Damage claims in the U.S. are expected to increase significantly. It is critical to have a professionally designed risk prevention and mitigation programme in order to protect a company's brand.
The importance of insurance
Financial security plays an important role in the ELD.
Currently, eight EU member states have committed to imposing mandatory financial requirements on operators, and more member states are expected to join. In these member states, insurance – among other instruments – is accepted as financial security. In some member states, the adoption of the ELD is backdated to 30 April 2007, and this should operate as the assumed date for the purpose of insurance retroactive dates for all member states.
Last updated 12 June 2013
Aon UK Limited is authorised and regulated by the Financial Conduct Authority. FP5559