Civil liability results from breach of a duty owned by one person to another where the breach causes loss or damage that the law will recognise. Only the person injured can bring an action in the County or High Court. Liability is of particular concern in investment and insurance companies. The wording in standard public liability insurance policies appears to be inadequate in relation to pollution claims. They are specifically aimed at dealing with environmental problems and are written on a site specific basis.
Cost depends on an audit which assesses the risk.
UK lenders are concerned that proposed changes in the law to extend the scope of liability could make them responsible for environmental problems created by their borrowers and the cost of clean up could exceed the value of the secured collateral therefore they out a Due Diligence Audit. One of the key objectives is to assist the operation of a single European market removing differences in civil liability refines operating in member states which might distort completion. The Environment Agency are now going to assess the pollution risk from all major industrial processes. Called Operator and Pollution Risk Assessment and will apply to all IPC registered sites. Risks are both site and process dependent and site specific information is important.