Accidents can occur at any time, no matter what preventative measures are in place. This article provides a few interesting examples of how a pollution accident can occur and the subsequent consequences. It will give you all the reasons you need to buy products pollution insurance.

1. Barrels usually have welded seams and the seams are the weakest point. Barrels are quality control tested, but only on a random basis and some barrels slipped through with welding problems. The faulty barrels were filled with chemical fluids and several barrels started to leak when they were moved. The chemicals leaked onto the floor of the premises and then into the drainage system. The clean up process was expensive. Without insurance the total cost goes down to the company and could result in the company failing.

2. A fuel tank manufacturer used external contractors to install fuel tanks and piping into a customer’s premises. The customer was unaware that one of the pipes connected to fuel tank was not sealed correctly and that fuel was leaking. Although the leak was relatively small and therefore went unnoticed, it was found to have leaked many thousands of gallons over several years. A law suit ensued between the manufacturer, the contractor and the customer and ultimately the contractor was found to be at fault. Despite the manufacturer not being to blame, the legal costs were substantial and, as they hadn’t purchased pollution insurance, the costs were down to the manufacturer.

3. It is the responsibility of a fuel tank manufacturer to ensure that their product is safe. When a person decides to fill their car with gas, it is expected that once full, the fuel supply turns off the fuel. However, in this example, fuel continued to flow and resulted in bodily injuring. In addition, the fuel spilt over the vehicle and over the ground, causing damage and pollution. Although the final court settlement was not particularly high, the expenses incurred by the non-insured fuel tank manufacturer were substantial.

4. Air pollution can present serious health hazards. Most commercial premises have air pollution control equipment and they need maintaining. In particular the filters have to be perfectly manufactured and be cleaned, or replaced regularly; otherwise pollutants may escape into the air. As an air pollution manufacturer you may be responsible for supplying and fitting air filters. Should pollutants get into the air and cause people to become ill then the responsibility may rest with your company. The resultant cost could be large and you therefore need to have product pollution liability insurance in place.

The simple task of buying products pollution insurance can provide your company with complete piece of mind and, should an accident occur, you know that you are covered. Always ensure that your insurance covers pollution; many liability insurance policies specifically exclude pollution. Check your policy and read it carefully. If you find you are not adequately covered, then make arrangements to buy the cover as soon as possible.

Visit Beacon Hill Associates for more information and resources on specialty insurance coverages. Don\’t forget to check out their latest news section.

Visit http://www.b-h-a.com for more information and resources on specialty insurance coverages. Don\’t forget to check out their http://b-h-a.com/news.aspx latest news section.

Author Bio: Visit Beacon Hill Associates for more information and resources on specialty insurance coverages. Don\’t forget to check out their latest news section.

Category: Business Management
Keywords: Environment, Insurance, Business