A review of the EPA’s enforcement files confirms that the Agency is noticeably tightening IPPC Licence requirements for Financial Provision. The Agency has recently:
The EPA recently appointed external environmental, legal, financial and insurance consultants to advise the Agency in relation to assessment, quantification and underwriting of Environmental Liabilities, so it can be expected that enforcement will continue to increase.
- Rejected a weakly worded form of Parent Company Guarantee from a medium sized manufacturer.
- Rejected a Combined Liability Insurance Policy with an Environmental Endorsement (extension) for Sudden & Accidental regulatory claims (e.g. Bartoline Endorsement) for a large multinational in the food & drinks sector. The EPA specifically noted that the policy failed to cover on-site clean up costs, gradual pollution incidents, remediation expenses and natural resource damages.
- Required confirmation from an SME that it had the capacity to pay the deductible in the event of a claim under an Environmental Impairment Insurance Policy to cover “Unknown Liabilities” and also required confirmation of provisions to cover “Known Liabilities” relating to groundwater contamination.
The EPA recently appointed external environmental, legal, financial and insurance consultants to advise the Agency in relation to assessment, quantification and underwriting of Environmental Liabilities, so it can be expected that enforcement will continue to increase.
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