Risk is inherent throughout the chemical industry, ranging from environmental liabilities, employee health and safety, natural and manmade incidents, and a volatile supply chain. Chemical manufacturing processes almost always happen at high temperatures and involve very toxic substances, which only increase your risk and potential for disaster.
The risk management team at Skyscraper insurance can help provide your operation with consistency and stability with a comprehensive plan to protect you against these and other liabilities. By establishing adequate coverage, you can continue your operations with the peace of mind knowing that you are insulated from the industry’s most common dangers.
Coverages provided to the chemical industry include, but are not limited to, the following:
- Property damage
- Business interruption
- Directors and officers liability
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 coverage’s:
- 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.Pollution liability insurance protects you from claims related to these kinds of situations. Chemical manufacturers often combine the GL and pollution coverage’s into one policy, thus avoiding coverage gaps. We highly encourage all the chemical product business we work with to follow this rule of thumb.
- 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.