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Benchmarking Trends: Environmental Liability Directive Drives Shift in Purchasing Of Environmental Liability Insurance


The Environmental Liability Directive (ELD) has imposed new liabilities for environmental damage on many companies operating within the European Union (EU), including the requirement that operators restore an environment back to its baseline condition in those instances where damage has occurred.

This, together with a host of other potential environmental liabilities companies now face, has led to a rise in demand for environmental impairment liability (EIL) insurance across Europe and changes in buying patterns. This paper looks at Marsh’s database of EIL policies placed by energy, waste, manufacturing, infrastructure, and retail organisations operating in Europe between 2006 and 2014 to reveal:

  • Changes in demand for EIL insurance.
  • Average limits of indemnity purchased.
  • Average premium paid.