§ Lord Kennetasked Her Majesty's Government:
Whether all installations where hazardous substances are handled, or from which they are released, are required by law to be fully covered by insurance against liability to third parties, and what protection, where they are not so covered, is available to victims of accidents should the owners of the installations become bankrupt.
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Lucas of Chilworth)Apart from liability for nuclear damage, there is no general requirement for the insurance against liability to third parties of installations where hazardous substances are handled and from which they are released, though insurance against liability to employees is compulsory by law. There is no special provision governing claims by accident victims against the owners of such installations in the event of the owner's bankruptcy.
In practice, however, the majority of businesses are insured against their liability to the public. Furthermore, the Health and Safety at Work etc Act 1974 requires employers to do all that is reasonably practicable to ensure that their activities do not put workpeople or the public at risk. There is a system of specific statutory controls over installations where hazardous substances are handled. There are also a number of control measures under planning legislation on the location of such installations and development nearby.