Released on: November 29, 2007, 2:34 am

Press Release Author: Reuben Aitchison

Industry:

Press Release Summary: Aon, the UK's leading risk consultant and insurance broker,
is calling for clarity over who should be held liable for clean up costs and other
harm to people and property arising from possible contamination on brownfield sites.


Press Release Body: Aon, the UK's leading risk consultant and insurance broker, is
calling for clarity over who should be held liable for clean up costs and other harm
to people and property arising from possible contamination on brownfield sites.

As many as two-thirds of the three million new affordable homes pledged by Prime
Minister Gordon Brown are likely to be built on former industrial land, including
former landfill sites. But at present, there is no clarity around who would be held
liable for the consequences of contamination created by previous owners and past use
of the land.

Bob Martin, a director of Aon's Environmental Consulting and Solutions unit (ECAS),
is concerned that the government has provided no answers as to who will and should
carry the liability for the consequences of any legacy contamination issues that
could arise from these sites in the future.

"Recent case law should raise significant concerns for former owners, potential
developers as well as future owners and tenants of properties built on brownfield
sites. The possibility has been raised that even the current owners or tenants could
be liable to meet clean up costs or other liabilities for contamination caused by
former owners or redevelopers.

"This concern is particularly relevant given the current flooding. Because a lot of
our industries grew up by rivers and canals, so many of the brownfield sites the
government intends building on will be on flood plains, and water is a ready medium
through which historic contamination can become mobilised.

"All that is clear about this issue at the moment is that there is no clarity. Is it
time for the government to impose a mandatory requirement on past or present owners
and/or redevelopers to have adequate financial security or environmental insurance
in place for a suitably long period.

Bob explained that a mandatory financial security requirement was dropped from the
final version of the EU's Environmental Liability Directive, but this does not mean
it could not be enacted into UK law to protect eventual owners or tenants of
brownfield site developments and others who may be harmed by any contamination that
might migrate off these sites. He believes that there is now a strong case to
introduce a statutory environmental insurance requirement on either the developer
and/or the past or present owners.

Aon UK is ranked by A.M. Best as the number one global insurance brokerage based on
brokerage revenues and voted best insurance intermediary, offering classic
sports car insurance, high value home insurance, entertainment and media
insurance and construction site insurance.


Web Site:
http://www.privateclients.aon.co.uk/privateclients/microsites/cars/classic.aspx

Contact Details: directory@vandelay.co.uk