Do your business activities impact on the environment?

Most Directors and Officers in businesses are aware they can be personally held responsible for violations of legal requirements within their organisation.  Typically, this will cover areas such as health and safety, data protection and general negligence

To protect themselves, individuals will normally cover their personal liability by taking out Directors and Officers insurance cover, but within the next two years, an additional area of responsibility needs to be covered in any policy of this type.

The Companies Act 2006 stipulates that, by October 2008, new statutory responsibilities for directors will include a requirement to disclose to shareholders any environmental liability or effect on climate change the company may have as a result of its activities.

Insurance industry experts are predicting a large increase in claims as a result of these new laws, the full implications of which are not yet fully known.  Brian Jackson, Corporate Director of Spiral’s approved insurance brokers BiB Darlington, said: 

”This sort of legislation has already started to have an impact in the USA, with businesses large and small being taken to court as a result of their lack of explanation of the environmental impact of their business model.

“With the advent of American style litigious activity in the UK, several law firms specialising in this sector have opened up, and actions against Directors and Officers of defaulting firms is highly probable.

“The good news is that no risk is uninsurable, but companies and individuals would be best advised to make sure they are protected against the possibility of non-compliance well before October 2008”.

BiB can offer advice and quotations on a wide range of insurance policies.  If you would like to speak to a BiB representative, contact us.