Marsh warns of chemical risk

Marsh has warned companies that use chemical substances in Europe of the risks of failing to adhere to the EU’s Registration, Evaluation and Authorisation of Chemicals (REACH) implementation framework.

REACH’s pre-registration phase started on 1 June 2008 and ended Monday.

Christopher Bryce, industry practice leader, chemicals and life sciences EMEA, said: “Non-compliance creates numerous risks and liabilities. An error or omission in complying with the pre-registration phase will result in the ban of use of the chemical substance in the EU, while a ban on the use of the chemical substance will result in an interruption in the supply chain and related financial losses.

“The error or omission may be the responsibility of the registrant; the ‘only representative’ in case of a non-EU located manufacturer or importer; or the ‘third party representative’ where a manufacturer or importer appoints such an organisation to perform certain tasks. It is vital that companies understand what their obligations are and ensure that they are compliant with REACH’s deadlines.”

Marsh has a number of solutions to address the risks and liabilities relating to the pre-registration phase, including insurance for the manufacturer or importer to protect against their loss of revenue resulting from supply chain interruption due to an error or omission.

Chemical substances suppliers can also secure insurance against legal liabilities in the event that their customers incur a loss of revenue as a result of their error or omission.