NU Online News Service, Oct. 7, 3:03 p.m. EDT
The escape of toxic sludge from a reservoir at an aluminum processing plant in Hungary is likely uninsured as the company faces total liability for an event that has wiped out all wildlife in the Marcal River, a broker with Aon said.
Simon Johnson, Aon Risk Solutions' environmental director for the United Kingdom, Europe, Middle East and Africa, said that Europe's Environmental Liability Directive (ELD) makes the company responsible for the contamination fully liable for the clean-up of the spill and any damage to the environment. He described the law as having some "extremely strong teeth" and that full liability could lead to the collapse of the company, underscoring the need for corporations to secure a comprehensive environmental insurance program.
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