XL Insurance, the global insurance operation of XL Capital Ltd (NYSE: XL), has launched an expanded environmental insurance policy for the UK market to cover potential liabilities created under the EU's Environmental Liability Directive (ELD) as standard.

The policy has been expanded to cover the 'damage caused' liabilities under the ELD, in addition to just 'pollution incidents'. Under the Directive companies can be held liable if through their activities they cause damage to water, soil and protected species and natural habitats.

Simon White, XL Insurance environmental branch manager, commented:

"Environmental liabilities for companies are expected to rise considerably as a result of the Environmental Liability Directive being transposed into UK law. With increased liabilities comes a significant increase in the financial burden faced by companies. It is important that risk managers understand the potential large gaps in traditional insurance policies when it comes to environmental liabilities.  In order to offer the best cover for UK companies we have extended our environmental policy wording to provide comprehensive protection, which now includes, as standard, full cover for potential liabilities created under the EU's Environmental Liability Directive."

The XL Insurance environmental underwriters work closely with risk engineers to offer individual cover and risk management solutions. Insurance can be provided for a range of environmental exposures including historic contamination, property transactions and the European Environmental Liability Directive.