ICA has served the Chemical Industry for over four decades. With Clients that have ranged from aerospace safety-product manufacturers, to urethane-product distributors, and Clients that source organic and inorganic compounds, reagents, phase transfer catalysts, dyes, metallic elements among others, ICA is a professional team member of our Chemical Industry Clients’ operational and financial risk management organizations.
As society has evolved to protect consumers over the past decade, the increase in personal injury awards to injured plaintiffs from product liability damages far exceeds any other category of liability damages awarded – including general liability, negligence, and medical malpractice.
When products cross certain geographic boundaries, the territory in which they land may have governing laws that are different from where they originate. Upon entering the United States, specific regulations dictate compliance (i.e. labeling) and procedures for control, for example: storage, transportation and disposal of the product(s) to protect the public and the environment. Therefore, failing to secure the right types and levels of insurance coverage could leave the company uncovered or may not address all the areas of risk cited above, potentially hindering the company’s ability to fully recover after a loss.
Therefore, the fundamental need to develop a sound risk management methodology applies to all companies in the business of producing chemicals whether they are mixing, blending, manufacturing or otherwise, creating new chemical compounds. The business considerations of this industry include safety measures, damage control protocols, supply chain management, product sourcing, transportation, processing, product life cycle, environmental and pollution risks, all “elements” that comprise forming a comprehensive risk management program – by factoring internal and external sources of risk, and prioritizing those factors, which in many cases may lead to the company considering an Enterprise Risk Management program.
In today’s world, it is not impossible for a cyber event that could trigger a chain reaction of losses and collateral damages, potentially requiring remediation or clean-up expenses, third-party liability claims and first-party business interruption losses if the target of the cyber intruder is a chemical company.
Chemical industry Clients retain ICA on an ongoing basis because as new opportunities are discovered for product sourcing, scientific processes are developed, and operations undergo adaptation, which may pose new exposures that need to be addressed. ICA helps ensure that adequate protection or recourse is placed in terms of securing the appropriate financial backstops, usually in the form of insurance, for the Client to be made whole after a loss or respond to actions by third parties. Supplemental to the most widely used services that ICA provides its Clients, chemical industry businesses should review ICA’s Disaster Planning and Continuity Support Service as well as ICA’s Enterprise Risk Management Service available to them.
The following testimonial speaks to the value of structuring the most balanced and stable risk management programs to Chemical industry Clients that ICA has served for over a decade:
“We sought out ICA in a panic after our GL and Products Liability Insurer decided just before renewal to non-renew our insurance, for no known reason. As a metal powders distributor, the GL carrier suddenly decided we were not a fit risk, even though we had never had a claim! … After ICA’s efforts, they were able to find solid GL/Products Liability Coverage for only $28,000” (compared to $40,000 of premium spending on the client’s previous and weaker policy) “including $5 million of Umbrella coverage! After that, we decided that it was pretty good business to keep ICA on retainer, and in countless other instances, ICA solved our risk management problems as soon as they arose, efficiently and completely. ICA allows us to sleep at night, knowing we are protected securely.” – Chemical/Elemental Distribution Client
“After ICA’s completion of the audit of our Executive Management Liability coverage, we then focused on the marketing of our Ocean Marine policy. We experienced the same diligence, and fairness, and our rate was cut in half, and once again, the limits and coverage were substantially increased to meet our actual exposures.”– Urethane Sourcing and Distribution Client
Contact ICA for a comprehensive list of client references.