News Releases

Businesses Face Wake up Call on Environmental Liability Exposures says ACE
Nov 30, 2006

LONDON--(BUSINESS WIRE)--Leading insurer ACE European Group (ACE) is warning that UK businesses are exposing themselves to unnecessary environmental liability risks, simply because they continue to view specialist insurance products as too expensive and overly complicated.

Alongside a limited understanding amongst many UK businesses of the increased liabilities they face in light of the European Unions Environmental Liability Directive, a lack of awareness of the cover available and a reliance on existing liability insurance covers to offer adequate protection are exposing businesses to unnecessary risks.

A recent survey conducted for ACE amongst European risk managers also found that 1 in 10 major businesses expect to face an Environmental Liability loss each year.

The culmination of all these factors has serious consequences for UK businesses. Karl Russek ACEs Senior Vice President, Environmental Risk explains: Companies should not simply rely on their existing liability covers to provide the protection they need in the event of environmental damage clean up operations. In doing so they are exposing themselves to potentially significant losses.

The fact is that specialist environmental cover is now available for large and small businesses alike. In the case of the SME market, this cover is both extensive and affordable and can be provided as part of an existing liability and commercial package insurance programme.

The insurance industry needs to focus on highlighting the specific benefits of dedicated environmental liability cover to help businesses.

Notes to Editors:

ACE offers a full range of environmental liability insurance solutions. In June 2006, the company launched a Package Pollution Liability cover designed to make it easier and less costly for small and medium sized companies to manage their environmental related risk and liabilities. The package provides cover across a number of areas that are critical to small and medium sized businesses, such as damage to third party property, and coverage for sudden and gradual pollution. Other areas included in the package provide coverage for on-site and off-site first-party cleanup and automatic coverage for biodiversity damage.

ACE Environmental Risk offers a range of environmental liability solutions from traditional risk transfer to bespoke programmes. Specific products include:

  • Premises Pollution Liability (PPL): claims made policy offering a range of cover for gradual, sudden and accidental pollution resulting from the ownership, control and/or operation of premises.
  • Contractors Pollution Liability (CPL): Offering pollution (gradual and sudden and accidental) liability protection to insured contractors and subcontractors.
  • Contractors Pollution/E&O  a package policy designed for environmental contractors and consultants who derive the majority of their revenue from services.
  • Remediation Cost Cap/Containment (RCC) - A stop-loss policy that provides the insured with protection against cost overruns resulting from a pollution clean-up project. The policy is intended to protect against the uncertainty involved in undertaking a redevelopment project of a contaminated site and minimise the associated risks.
  • Package Pollution Liability ACE provides limits up to £5million for a broad range of protection including both first and third party coverages. It can be provided as an endorsement to existing UK liability covers and as a new section in commercial package policies from ACE.


ACE European Group has established branch offices in 16 countries across Europe, Freedom of Services permissions to operate in 27 EEA countries and affiliate offices in Egypt, Bahrain and Pakistan.

ACE European Group comprises the operations of ACE Europe, ACE Global Markets and ACE Tempest Re Group. ACE Europe provides a range of tailored Property and Casualty, Accident and Health and Personal Lines solutions for a diverse range of clients. ACE Global Markets (AGM) is ACEs specialty international business, underwriting through ACEs Lloyds Syndicate 2488 and UK registered company ACE European Group Limited. Specialty lines include excess and surplus lines business, Marine, Aviation, Energy and Political Risk as well as Property, Financial Lines and Accident and Health. Additional information on ACE European Group can be found at

The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), a component of the Standard & Poors 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at:



Media Contact:
Katie Weeks, + 44 (0) 20 7173 7585
Communications Dept.