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event. The case study outlined further in this article explores the potential costs of a spill on your own site.

The Environmental Liability Directive (ELD) The ELD was transposed into Irish legislation under The European Communities (Environmental Liability) Regulations 2008 (the Regulations). The ELD has introduced a ‘polluter pays’ regime with new types of damages and liability. In Ireland, the Environmental Protection Agency (EPA) has been named the designated Enforcing Authority to act who is obligated to act wherever significant harm – or threat of harm – to the environment is occurring. Irish companies may therefore see an increased frequency of enforcement, and clean-up notifications. The ELD also introduces a new remediation concept for damage to biodiversity. In a country with such a unique and diverse natural flora and fauna such as Ireland this could have serious implications.

• The Directive introduces liability for

compensating for damage to protected species and habitats. For example, under the Regulations, if an operator of an industrial facility damages a protected habitat, then it may have to compensate for this loss of environment by providing and preparing an alternative site somewhere else. These are new concepts to businesses and the Regulations are causing uncertainty in the Irish insurance market..

A Standard Public Liability Policy is insufficient when it comes to Environmental Liability The result of these gaps is the development of EIL as a separate class of cover - allowing complex risks of a pollution incident to be assessed, properly underwritten - and proactively covered by specialised policy wording. Expanding legislation and therefore client’s increasing liability continue to be the main drivers of the environmental insurance market.

Chartis Solutions Chartis in Ireland has developed products which specifically compliment the liabilities from the ELD and provide broad coverage solutions for a range of industries. Chartis EIL products can help remove the uncertainty operations face about their ability to cover financial losses created by an incident classified under the ELD. Chartis EIL

products cover liabilities for damage to water, land, protected species and natural habitats, including primary, complementary and compensatory remediation, even covering change in environmental law.

Compulsory Financial Assurance for the Directive has already being enforced in Portugal (2010), with Spain, Greece, Bulgaria and Slovakia set to follow in the coming year. Compulsory financial assurance has primarily been addressed by environmental insurance products, how long will it be before it becomes compulsory in Ireland? Chartis Environmental Impairment Liability products can cover: Both sudden & accidental, and gradual pollution legal liability including third party liabilities,

Potential Pollutants Contractors

Storgage Tanks

• On/off-site clean-up • Biodiversity Damage • Losses arising from operation at 3


Leaking Pipes



• Mitigation costs • Transport • Defence costs • 1 party business interruption st

Chartis in Ireland has local underwriters, policy wordings, claims handlers and expertise. We can provide cover for many different industry types whom could potentially have environmental exposures, any manufacturer, contractor or even small scale industries like restaurants where there is potential to damage the environment. Chartis products can also be used in conjunction with risk finance techniques.

Companies which could potentially have exposures include:

• Manufacturing and Industrial facilities • Bulk storage and warehouses facilities • Waste treatment and disposal facilities • Commercial sites, including hospitals,

shopping centres, laboratories, hotels, and housing developments.

• National or multinational companies • Construction Contractors

“Chartis are clear market leaders when it comes to EIL with the largest team of underwriters/ managers in the industry and our local teams have a granular understanding of the regulations, client needs and buying habits in their territory, as well as having access to Chartis’ global resources. Our products are among the most comprehensive policies available and Chartis have the knowledge expertise and experience to help our insured maximize their coverage”… 33

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