Fertilizer Manufacturers Cannot Neglect Insurance

Posted April 18, 2017 by Administrator in Agribusiness | 0 comments

Agribusiness Insurance CoverageManufacturing fertilizer, like many things, used to be a simpler process – create and distribute high quality organic material for enriching soil. Now fertilizer manufacturers must remain aware of a variety of factors to avoid potential lawsuits, from pollution liability and cyber liability to employment practices liability and beyond.

For example, individuals who live near fertilizer plants may complain of the smell and raise concerns about water contamination from runoff. There are numerous ways fertilizer can damage the environment. To avoid financial ruin, manufacturers need to ensure they have ample insurance to protect their business.

An Overlooked Risk Within the Industry

Many agribusiness companies invest in the standard types of insurance coverage such as farm liability protection or equipment coverage. However, the fertilizer manufacturing industry has one lesser-known risk that business owners cannot afford to disregard: the combustible properties of stored fertilizer and related chemicals.

In the spring of 2013, an explosion at a Texas fertilizer plant proved deadly. While investigators determined the fire was set on purpose, the explosive nature of materials found at fertilizer plants is undeniable. The investigation determined that the company in question, West Fertilizer Company, failed to take proper precautions when storing chemicals at their facility. The company became the target of numerous lawsuits as a result.

While the West Fertilizer Company explosion is a worst-case scenario for businesses, it represents why fertilizer manufacturers cannot afford to neglect known threats. Investing in the right types of insurance can reduce your risk. Cline Wood can help you manage your risk to protect your bottom line. To learn more, contact us.

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.

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