Insurance broker, Marsh, has revealed that transport and logistics firms across Europe are struggling to cope with new categories of liability and an increasingly complex regulatory landscape.
Marsh’s latest research, ‘Liability Insurance Buyers Report Europe 2007’, looks at the issues, trends and aspects of the transport and logistics industries that will influence insurance buying and risk management strategies of companies in this sector in 2008 and beyond. The report also examines the prices paid for, and the volume bought of general and product liability for 139 companies in the transport and logistics sector across Europe.
The report highlights that while most European transport and logistics firms take professional advice about risk management, much of it is not targeted at the areas companies know can damage them the most, such as contractual risk, regulatory risk and reputation/brand risk. Together, these three categories were cited by about two-thirds of all survey respondents.
Emerging risks are:
Environmental – For transport and logistics companies, much of the concern focuses on carbon emissions from vehicles. This issue, and new environmental legislation, is expected to have insurance implications. The ‘polluter pays principle’, enshrined in the Maastricht Treaty, was further strengthened by the introduction of the European Environmental Liability Directive in April 2007.
A transport and logistics company that causes damage to the environment can now be found liable to pay compensation, regardless of whether it has been negligent or caused harm an individual or other third party. The directive has wide application across the transport sector on land, at sea and in the air, and does not place any limit on the amount of damages that can be awarded in compensation, so its impact on liability is potentially far-reaching.