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Commercial landlords warned over environmental liability

Thursday, February 25th, 2010

Cowens claims they could face claims for damages and be subjected to action from regulatory bodies for failing to address environmental safety, even if it is a tenant who is at fault.

Commercial property landlords could face claims for damages and be subjected to action from regulatory bodies for failing to address environmental safety even if it is a tenant who is at fault.

That is the claim of Cowens Survival Capability, a firm that advises companies on how to assess any potential risks to their business and aims to ensure that they have the correct policies in place to cover any eventualities.

It added recent changes in legislation, including Part IIA of the Environmental Protection Act and a number of EU directives, coupled with increased public awareness driven by the media, means that there is now more pressure on landlords to take action.

Stuart Williams, from Cowens SC, commented: “The changes mean that a lot of landlords do not have the correct insurance cover in place should they be held liable for damage to the environment, whether that’s to water, land, buildings or people.

“For example, property insurance does not normally cover historical pollution or contaminated soils, often found when brownfield sites are being developed. With existing liability insurance, there’s often no cover for damage to one’s own property or cover for historical pollution.

“Our advice is for landlords and the owners of commercial property to complete a thorough review of the risks concerned with environmental liability and ensure that their insurance cover is more than adequate.”

He concluded: “There is a lot of cover now available, such as specialist policies that cover premises pollution or contractor pollution. It could prove costly to take the risk of not being insured.”

Cowens claims businesses who should examine their cover include land developers, manufacturers, SMEs, service companies, the petro-chemical industries, owners of sites where hazardous materials are stored, companies working in the utilities sector and contractors.

According to figures from the Environment Agency, there were 723 pollution incidents during 2008 that had a serious impact on the environment in England and Wales, with 79 causing major environmental damage. In 2008 there were 251 companies fined as a result of action by the EA, with the average fine totalling £10 580.

This in an excert from an article on Postonline.co.uk and a similar article on FreshBusinessThinking.com by Lea Pachta.

Tags: commercial landlords, Commercial Property, cowens, environmental liability, insurance broker, Legal
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Don’t take the risk of making a move in the Wrong Direction

Friday, January 22nd, 2010

Many company directors are still not aware of their responsibilities as part of the Companies Act 2006, and remain ignorant that they could be prosecuted for their failures to take appropriate action when required.

That’s the view of Stuart Williams, a director at Cowens Survival Capability, a business that helps firms understand how to ensure that they have the right business continuity procedures in place. Stuart says that recently, Cowens SC has been inundated with enquiries from directors who fear that the economic environment could signal the end of their business, and are concerned about the consequences.

Stuart commented:

“Under the Companies Act 2006, directors must make decisions and take appropriate actions that make their business a success. The difference now though is that directors can be individually held liable, not just the corporate entity. Many people are unaware that they do not even have to be named as a director to incur liability, as being in position to control or influence a business can leave an individual open to liability.”

Failure to take correct actions could lead to a director being sued by the company, shareholders and customers, with consequences including fines or jail terms. Business continuity planning is about ensuring the right strategies are in place ensuring the right strategies are in place so that when a crisis happens, a business can respond quickly and effectively. Part of building a robust plan involves correctly analysing internal and external risks, such as site safety, fraud, environmental procedures, and health and safety issues. The role of a director, as defined by the Government, is someone who must decide on what is most likely to promote the company’s success - in effect, a long-term increase in value. Says Stuart: “It’s a complex role being a director, and whilst it is a good title to have, people must realise that the duties are now enshrined in law. The company, its shareholders, employees, creditors, competitors, regulators and even the Government could sue you if they feel a loss has arisen because of a director acting incorrectly.

This means that if a claim is brought against a person, they may be personally liable to defend those claims, something that could put personal assets at risk. The effects of this could be that a person is disqualified as a director, a criminal prosecution leaving to a jail term, personal bankruptcy, the loss of a job or reputation and then of course there is the impact on a family unit should any of this happen.” Cowens advises its clients across the UK on these issues, first ensuring that a risk analysis is carried out before an appropriately strong risk management system is implemented.

Having developed over the past 25 years, the knowledge, expertise, experience, understanding and resources to help and guide people to carry out risk analysis properly. Cowens will suggest practical measures to eliminate, reduce or minimise exposure.

Advisors at Cowens will provide the tools and technical support to assess the probability of the risk occurring and give people all the information they need to make a qualified commercial decision whether or not to accept it.

For more information on business continuity planning, and the responsibilities placed on directors and individuals, visit www.cowenssc.co.uk or contact Cowens now.

Tags: business brief, business continuity, companies act 2006, cowens, cowens survival capability, liability, Risk, risk analysis, stuart williams, survivial capability, wrong direction
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Commercial landlords warned over environmental liability

Posts Tagged ‘cowens’

Commercial landlords warned over environmental liability

Don’t take the risk of making a move in the Wrong Direction

Many company directors are still not aware of their responsibilities as part of the Companies Act 2006, and remain ignorant that they could be prosecuted for their failures to take appropriate action when required.

Stuart commented:

For more information on business continuity planning, and the responsibilities placed on directors and individuals, visit www.cowenssc.co.uk or contact Cowens now.