Flammable lubricants severely burning consumers, environmental agencies enforcing hefty penalties on pollutant seepage, and factory workers bringing suit due to illness caused by years of toxic exposure…chemical product manufacturers, even more than metal or plastics manufacturers, have risks that call for a comprehensive insurance package. Below is a summary of key coverages:
- Property: A chemical product manufacturer needs a property policy that will adequately insure the facility buildings, the inventory, and production machines/equipment. Because many chemical products are flammable (particularly aerosol products), insurance companies like highly-protected facilities containing adequate number of firewalls, regularly tested sprinkler systems, and facility safety protocol. Taking appropriate risk-control measures helps maintain low property ins rates.
- Pollution Liability: Chemicals stored in underground tanks can leak into soil, affecting groundwater and agriculture. Airborne emissions can rise above EPA-approved levels, and result in penalties or fines. Pollution liability insurance protects you from claims related to these kinds of situations. Chemical manufacturers often combine the GL and pollution coverages into one policy, thus avoiding coverage gaps. We highly encourage all the chemical product business we work with to follow this rule of thumb.
- Products Liability: Continual exposure situations are the biggest products liability concerns for a chemical product manufacturer. An auto repairman developing a disease linked to a product he’s used for 30+ years. A janitor developing a respiratory or skin condition after using the same cleaning solvent for his entire career. Bodily injury related to chemical exposure can lead to class-action lawsuits and multi-million dollar payouts. Products liability is a critical coverage for any chemical producer.
- Occupational Injury: Employees involved in the production process may pose the greatest risk of exposure to harmful substances. Taking safety precaution is very important, but an occupational injury insurance plan is necessary to protect your business from litigation that could arise from employee injury. Workers comp and non-subscriber insurance are two ways to protect yourself.
As a chemical product manufacturer, you want to clearly understand your industry’s risk exposures and coverages. Further educate yourself by reading these articles specifically targeting chemical product insurance:
|Chemical Product: Industry Specific Risks||Chemical Product: Non Subscriber Insurance||Chemical Product: Pollution Liability|