Basics Of Chemical Manufacturing Insurance
As a chemical manufacturer, you’re responsible for balancing the equilibrium between innovative products, public safety and profitability. Which means creating the right solution based on a mixture of research and development, safety protocols, marketing and sales, logistics, and risk management. You need chemical manufacturing insurance that stabilizes your organization in volatile situations.
The business insurance specialists at ALIGNED have put together this post on the basics of chemical manufacturing insurance and how it protects manufacturers of chemical products that help raise the quality of life for all of us.
Issues Facing the Chemical Manufacturing Sector in Canada
The United Nations’ Department of Economic and Social Affairs Sustainable Development Division issued a report discussing Canada’s approach to chemical management and highlighted the Canadian government’s legislative efforts in that respect. Those highlights include:
“The Canadian Environmental Protection Act, 1999 (CEPA 1999) is one of Canada’s most important laws respecting pollution prevention and the protection of the environment and human health in order to contribute to sustainable development. CEPA 1999 supports a ‘precautionary approach’ and makes pollution prevention the cornerstone of national efforts to reduce risks of toxic substances.
Other key pieces of legislation governing the use of chemical substances include:
- The Hazardous Products Act – establishes standards for chemical classification and hazard communication and the authority to regulate or prohibit consumer products and workplace chemicals which pose a risk to their users;
- The Pest Control Products Act – ensures the protection of human health, safety and the environment by regulating products used for the control of pests;
- The Food and Drugs Act – governs foods, drugs, natural health products, cosmetics and medical devices sold in Canada;
- The Transportation of Dangerous Goods Act – promotes public safety in the transportation of dangerous goods;
- The Fisheries Act – prohibits the deposit of toxic or harmful substances into fish-frequented waters;
- various regulations made under these Acts.”
So depending on what type of chemical manufacturing your organization does and where in the supply chain you are, you have multiple laws and regulations you need to be aware of and comply with to ensure your business’s reputation and possibly its survival.
This is where chemical manufacturing insurance can step in and help mitigate the risks – especially litigation risks and/or costly environmental cleanup costs – that chemical manufacturers can face.
Chemical Manufacturing Insurance – What’s Covered
Chemical manufacturing insurance is customizable and can be scaled up or down depending on organization size. These are the most common coverages included in chemical manufacturing insurance however, your company may have other business and liability risks that need to be reduced so speaking with an ALIGNED commercial insurance expert may be your best course of action:
Commercial General Liability Insurance
CGL / Commercial General Liability Insurance provides litigation cover but for claims of property damage, personal injury, libel/slander and false advertising. Most importantly commercial general liability insurance also includes Product Liability Insurance which is a key coverage for any chemical manufacturing insurance policy.
Pollution Liability Insurance
Pollution Liability Insurance is a fundamental coverage for chemical manufacturers considering the overwhelming costs of litigation, fines and cleanup expense.
Product Recall Insurance
Product Recall Insurance is another vital coverage for chemical manufacturing companies and can protect them against the costs of recalling a product – including brand rehabilitation expense.
Property Insurance to protect your building, equipment, supplies, assets, etc., in case of perils such as fires, floods, windstorms, etc. Your chemical manufacturing plant may also need Business Interruption coverage to help you manage your operating costs while your chemical manufacturing activities are offline and Extra Expense protection to help you move to a temporary location and get back to manufacturing as quickly as possible if your company simply can’t afford to wait.
Boiler & Machinery Insurance
Boiler & Machinery Insurance / Equipment Breakdown Insurance because your chemical manufacturing operations rely heavily on precisely calibrated equipment and machinery. This coverage protects you from the costs of equipment failure due to specific perils including repair or replacement costs and other ancillary costs stemming from a malfunction.
Directors & Officers Board Insurance
Directors & Officers (D&O) / Board Insurance that protects your chemical manufacturer’s decision-makers from legal claims of ‘wrongful acts’.
Types of Manufacturers That Need Chemical Manufacturing Insurance
Typical chemical manufacturers we service include manufacturers of chemicals such as:
- Industrial chemicals including basic chemicals such as petrochemicals, inorganic chemicals, synthetic resins and fibers and polymers
- Agricultural chemicals such as fertilizers and pesticides
- Pharmaceuticals and medicines
- Formulated products such as paints, varnishes, lacquers, shellacs, stains, adhesives, sealants, soaps, toilet preparations, and other formulated chemical products
ALIGNMENT with the Right Brokers is Crucial for Chemical Manufacturers
Like you, we are specialists at what we do. ALIGNED only brokers commercial insurance products and works with Canada’s top insurance companies on your behalf. Contact us to get a free quote on chemical manufacturing insurance in minutes.