Chemical Industry Solutions
iCare Insurance recognizes the unique risks faced by chemical companies, and here’s how our experienced team can tailor insurance solutions to address your concerns, from handling hazardous materials to product liability. iCare offers a range of insurance products to the chemical industry, including property insurance, cyber & crime insurance, business interruption coverage, product liability insurance, and environmental liability insurance. Our one-stop approach simplifies your insurance needs and ensures proper protection. At Icare, we go beyond just providing insurance. We can partner with you to identify and mitigate risks through proactive measures. This could include safety program development, on-site inspections, and employee training initiatives.
Key Risks
- Chemical Hazards
Handling hazardous materials is inherent to the chemical industry, making the risk of chemical spills, leaks, or explosions a constant concern. These events can have catastrophic consequences, leading to fires that cause extensive property damage and injuries. Toxic releases can harm the environment and public health, potentially leading to lawsuits and regulatory fines.
- Business Interruption
Chemical plants are complex operations that rely on various interconnected equipment and processes. An incident like a fire, explosion, or natural disaster can disrupt production and halt sales. Business interruption insurance helps cover lost profits and ongoing expenses during such downtime, providing a financial cushion while the company recovers.
- Product Liability
Strict product liability laws hold manufacturers responsible for any harm caused by defective products. If a chemical product is found to be faulty and leads to injuries or property damage, the chemical company could face significant lawsuits and financial settlements. Product liability insurance protects companies from these expenses, ensuring they can focus on product safety and improvement.
- Environmental Damage
The chemical industry has a responsibility to operate in an environmentally responsible manner. However, accidental releases of pollutants or spills during transportation can occur. Environmental cleanup costs can be substantial, and regulatory fines for non-compliance can be severe. Environmental liability insurance helps companies address these financial burdens and potential penalties.
- Cyberattacks
Chemical companies are increasingly reliant on automation and digital control systems. This dependence makes them vulnerable to cyberattacks that can disrupt operations, steal sensitive data, or cause malfunctions in critical equipment. Cyber & Crime insurance can cover data breach recovery costs, business interruption due to cyberattacks, and even extortion attempts.
Product
1. Machinery Breakdown Policy Insurance
Machinery breakdown policy insurance is commercial insurance designed to protect chemical companies from financial losses from physical damage to their machinery and equipment.
What does it cover?
- Repair or replacement of damaged machinery due to sudden and unforeseen breakdowns.
- Coverage can extend to specific perils, such as electrical breakdowns, mechanical failures, pressure surges, and wear and tear.
What it typically doesn’t cover:
- Gradual deterioration of machinery over time.
- Faulty or improper installation of machinery.
- Lack of proper maintenance.
- Damage caused by natural disasters (unless specifically included as an add-on).
Additional coverage available for an extra premium:
- Business interruption costs arising from machinery breakdown.
- Expedited repairs or replacement of machinery.
- Contamination caused by machinery breakdown.
2. Worker’s Compensation Policy Insurance
Worker’s compensation policy insurance is a mandatory insurance policy that safeguards employers from financial responsibility for employee injuries or illnesses sustained during employment.
What does it cover?
- Medical expenses for work-related injuries or illnesses.
- Rehabilitation costs.
- Death benefits for dependents of employees fatally injured on the job.
What it doesn’t cover?
- Injuries caused by employee intoxication or willful misconduct.
- Injuries sustained outside the scope of employment.
- Pre-existing medical conditions not aggravated by work activities.
Additional coverage available for an extra premium:
- Employer liability insurance for lawsuits exceeding the worker’s compensation benefits.
- Occupational disease coverage.
3. Fire Loss of Profit Insurance
One kind of business insurance that shields businesses against monetary losses stemming from a fire-related company disruption is fire loss of profit insurance.
What does it cover?
- Gross profits were lost due to a fire.
- Operating expenses continue even when the business is not operational (e.g., rent, salaries).
- Additional costs incurred to minimise the interruption (e.g., temporary relocation).
What it doesn’t cover?
- Loss of income for the business owner(s).
- Damage to physical property (covered by separate property insurance).
- Business income lost due to reasons other than fire (e.g., power outage).
Additional coverage available for an extra premium:
- Increased costs of rebuilding or repairing the business premises.
- Expedited loss of profit coverage.
- Extra expense coverage for additional costs incurred during the interruption.
4. Group Health Insurance
Group health insurance is an employer-sponsored health insurance plan that provides financial protection to employees of chemical companies and their dependents in the event of medical illness or injury.
What does it cover?
- Hospitalisation costs include room charges, surgery fees, and doctor visits.
- Outpatient care, including physician visits, diagnostic tests, and prescription medications.
- Services related to preventive care, such as yearly physicals and immunizations (based on the plan).
What it doesn’t cover?
- Dental and vision care (often covered by separate plans)
- Long-term care services
- Elective surgeries (may require pre-approval)
Additional coverage available for an extra premium:
- Life insurance benefits
- Accidental death and dismemberment insurance
- Critical illness insurance
5. Group Personal Accident
Group personal accident insurance is an insurance policy designed to provide financial protection to a group of people (typically company employees) in case of accidental death or disability.
What does it cover?
- Accidental death benefit: A lump sum payout to the nominee in case of the insured’s accidental death.
- Benefit for permanent disability: a payout determined in part by the degree of disability if an accident renders the insured permanently incapacitated.
- Temporary disability benefit: A partial income replacement benefit if the insured is temporarily disabled due to an accident (maybe a fixed weekly or monthly benefit).
What it doesn’t cover?
- Pre-existing medical conditions
- Self-inflicted injuries
- Accidents due to war, riots, or intentional criminal acts
Additional coverage available for an extra premium:
- Medical expense coverage for accidental injuries
- Hospital daily cash allowance
- Child education benefits in case of accidental death
6. Group Term Life
In the case of an employee’s death, the employee’s family is financially protected by group-term life insurance, an employer-sponsored life insurance plan.
What does it cover?
- A lump-sum death benefit is paid to the beneficiary named by the insured employee.
What it doesn’t cover?
- Death due to pre-existing conditions (unless covered by an additional rider).
- Suicide (may have a waiting period).
- War or acts of terrorism (may require additional coverage).
Additional coverage available for an extra premium:
- Accidental death and dismemberment (AD&D) benefit for accidental death or dismemberment.
- Waiver of premium rider.
7. Cyber & Crime Insurance
Cyber and crime insurance is a combination policy designed to protect chemical companies from financial losses resulting from cyberattacks and criminal activities.
What does it cover?
- Cyber Coverage: Data breach costs, business interruption due to cyberattacks, cyber extortion, and privacy liability.
- Crime Coverage: Employee theft, fraud, product tampering, and forgery.
What it doesn’t cover?
- Intentional cyberattacks or data breaches by the insured.
- Losses due to physical damage to property from cyberattacks (covered by property insurance).
- Cyberattacks causing environmental pollution (may require specific coverage).
Additional coverage available for an extra premium:
- Crisis management expenses.
- Regulatory fines and penalties due to data breaches.
- Network security liability.
8. Industry All Risk Policy
An Industry Risk Policy (IAR) is a comprehensive insurance policy that protects chemical companies from physical damage and business interruption losses.
What does it cover?
- Physical damage to property caused by fire, explosion, theft, natural disasters, and other perils (depending on the specific policy).
- Business interruption losses resulting from property damage, including lost profits and ongoing expenses.
What it doesn’t cover?
- Gradual deterioration of property over time.
- Wear and tear of machinery (may require additional coverage).
- Pollution caused by the insured’s operations.
- Losses due to war, terrorism, or intentional acts by the insured.
Additional coverage available for an extra premium:
- Contamination caused by accidental events.
- Expedited replacement of damaged property.
- Loss of income for business owners.
9. Sales Turnover Policy
A Sales Turnover Policy (STOP) is a type of marine cargo insurance specifically designed to protect chemical companies from losses or damages to their products during transportation throughout the supply chain.
What does it cover?
- Domestic and international transportation of chemical products, including raw materials, finished goods, and waste products.
- Coverage for perils like fire, theft, collision, and weather events.
What it doesn’t cover?
- Damage due to faulty packaging or improper handling by the insured.
- Spoilage of chemicals due to inherent vice or temperature fluctuations.
- Losses excluded by standard marine cargo insurance (e.g., war, terrorism).
Additional coverage available for an extra premium:
- Coverage for specific types of chemicals requiring special handling or transportation.
- Expedited shipping to minimise business interruption.
- Loss of profit due to transportation delays.
10. Product Liability Recall
Product Liability Recall insurance protects chemical companies from financial losses from recalling defective products.
What does it cover?
- Costs of recalling, repairing, or replacing defective chemical products.
- Transportation and storage costs associated with recalled products.
- Communication expenses to notify customers and distributors about the recall.
- Legal fees and liability claims arising from product defects.
What it doesn’t cover?
- Fines and penalties imposed by regulatory agencies.
- Costs of product improvements or redesign to address the defect.
- Retained earnings lost due to a product recall.
Additional coverage available for an extra premium:
- Crisis management expenses to address reputational damage.
- Business interruption losses resulting from a product recall.
- Loss of product value due to obsolescence during a recall.
Standard Fire & Special Peril Policy
A Standard Fire & Special Peril Policy is a fundamental insurance policy designed to protect chemical companies from financial losses caused by physical damage to property due to specific perils.
What does it cover?
- Fire damage to buildings, machinery, and inventory.
- Additional perils, such as explosions, lightning strikes, riots, and natural disasters (depending on the specific policy), can be included.
What it typically doesn’t cover?
- Gradual deterioration of property or machinery.
- Business interruption losses (may require additional coverage).
- Pollution caused by the insured’s operations.
- Losses due to war, terrorism, or intentional acts by the insured.
Additional coverage available for an extra premium:
- The explosion is caused by pressure vessels or specific equipment.
- Increased cost of rebuilding due to inflation.
- Contamination caused by fire or other insured perils.
