All types of household and commercial products may contain toxic chemicals. Some everyday products with base chemicals include cosmetics, suntan lotion, perfumes, cleaning agents, air fresheners, motor oil, latex and oil-based paint and even batteries.
Manufacturers and distributors of products made from chemicals- be it in liquid form, gas form or solid form – have unique risks that warrant unique insurance coverage.
So let’s begin a quick review of the coverage needs.
Chemical Manufacturer’s Insurance Protection
The plethora of companies that manufacture products with chemicals in them require considerable liability insurance limits that can protect them in the event they are sued due to any of the associated hazards associated. The fact that there is significant environmental impairment exposure as well only adds to the urgency of the requirement.
Because chemicals are caustic in nature and have an inherent explosion risk when combined, the related property liability and business income coverage is difficult to write.
The risk exposure for Workers Comp insurance is very high. This is why there is a real need for extensive loss prevention management programs.
Moreover, Commercial Auto and Inland Marine risks vary as per the way chemicals and products with base components of chemicals are transferred from one place to another.
Chemical Distributor Insurance Protection
You and I know that there is a vast difference between the roles a chemical distributor plays and the role a chemical distributor plays. Nonetheless, when it comes to insurance protection, there is a striking similarity that is based on similar exposure.
Chemical distributors require considerable liability limits so that they can be protected from a lawsuit related to environmental impairment stemming from potential lawsuits that may occur as a result of a chemical release from stocked and sold chemical products.
The elevated risk in regard to Workers Compensation matters is genuine due to the toxic nature of products manufactured with chemicals. Moreover, there is always a catastrophic explosion possibility when it comes to products containing chemical matter.
Then there is the risks in regard to commercial auto which includes the standard motor carrier exposures as well as environmental impairment exposures occurring if a company vehicle overturns or is involved in a crash.
What type of insurance coverage is applicable for the chemical manufacturer and distributor?
Policies can include the following forms:
• Commercial property
• Business income
• Commercial Auto – Commercial truck fleet
• Inland Marine
• Commercial Umbrella
• Crime and Employee Dishonesty
• Workers Compensation