Chemical Process Firms and Their Insurance
Insurance for the CPI is overwhelming for both buyers and brokers. It was noted in an International Risk Management Institute article that,
1. Most agents and brokers will need to seek out experienced brokers to navigate the marketplace and provide appropriate coverage to clients
2. It is absolutely possible to purchase insurance with no coverage for the policyholder
Only a small number of highly focused specialty consultants and brokers are available as it relates to the small to mid-sized businesses in the chemical process industry, putting broker selection in a critical role.
Application of the Commercial General Liability's pollution exclusion varies by jurisdiction - what is not a pollutant in one state might be in another. New Jersey and Pennsylvania are neighboring states having opposing positions on pollution.
How about waste... Waste is a pollutant in the ISO CGL. Waste can also be excluded in pollution liability policies when not addressed. Waste includes materials to be recycled. Consider recovered solvents or perhaps you use another business's waste product to create a new product.
Insurance is part of a more complex risk and legal environment. Off-the-shelf insurance for the chemical process and peripherally related businesses will leave much to be desired. The common market-based approach leaves the technical and structural unaddressed. Simply identifying coverage as a line item is not sufficient ; an in-depth operations and coverage discussion is imperative.
There is no replacement for qualified and experienced representation.