What is chemical manufacturing insurance?
Chemical manufacturing is an important global industry that creates specialized products for many uses. These facilities use inorganic and organic materials to develop chemical outputs, which are necessary for highly diverse areas. Whether you produce intermediate products for manufacturers in other industries or end products that go directly into the hands of consumers, your business may face exposure in multiple fields, because it is these materials that you rely on.
Manufacturers using agricultural, pharmaceutical, performance or specialty chemicals are only a minority group that can benefit from chemical manufacturing insurance. In such a competitive industry, you have to keep your operations in check and constantly comply with health and safety regulations set by the Environmental Protection Agency (EPA).
Consider a long list of chemicals that companies like you can produce: resins, synthetic rubber, synthetic fibers, fibers, pesticides, fertilizers, paints, adhesives, soaps, cleaning compounds, abrasives, detergents and plastics. If you produce any of these products, you must mitigate the risks and hazards that your products may cause to the environment or consumer safety.
We know that for your products, you value the right formula for success, and we share the same philosophy in risk management. Get in touch with risk insurance experts today – we’ll be happy to help you customize your insurance plan to support the prosperity of your company.
What are the contents of chemical production insurance?
Chemical manufacturer generally chooses the following combination of core policies. Each one addresses a unique area of exposure that your business faces.
Pollution liability: this policy provides coverage for claims and litigation arising from hazardous material contamination incidents.
Property loss: financial support for your tangible assets, such as your construction, manufacturing equipment, and inventory.
Product liability: this policy provides protection if your product causes personal injury or property damage.
The right insurance plan could be the difference between paying high litigation costs and protecting the company’s wallet. Here is a detailed understanding of the insurance coverage options available to chemical manufacturer:
liability for pollution
Even if your company is very concerned about protecting the environment, dealing with chemicals is by definition a risk because of their pollutant / hazardous nature. Fortunately, when you are faced with an environmental accident, the pollution liability policy can help you minimize the cumulative costs. The policy usually includes costs for material clearance, personal injury and property damage, as well as litigation related settlement costs.
For example, if an insecticide leaks from a tank and contaminates a drinking water source, the policy could provide funding to deal with expensive purification operations, while helping affected parties pay for medical or damage related costs.
Mixing and mixing raw materials into products requires a solid infrastructure. Chemical manufacturer needs a property insurance policy to ensure the physical assets of their business, from packaging lines and chemical filling machines to inventories of products waiting to be allocated to the manufacturing facility itself.
When dealing with flammable chemicals, the threat of fire always exists. Damage, theft and property damage can also bring your business operations to a standstill. A property insurance plan can cover the cost of repairing or replacing equipment so that your business can continue to run smoothly.
As a chemical manufacturer, you have a particularly high risk: you may be responsible for these products when they are used in the products of other manufacturers, or once they fall into the hands of consumers. Product liability policy can protect you from third party litigation, bodily injury or property damage by your product.
For example, suppose that the soap you produce starts to irritate customers’ skin. The policy will normally cover the costs of any related claim or legal costs necessary to defend the action.
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