Chemical Insurance
The chemical industry is a broad sector predominantly based around chemical manufacturing. Manufacturing processes vary from large commodity chemical plants that operate continuously to smaller batch manufacturing. The hazard profiles of the manufacturing processes can vary significantly. Most of these products serve to manufacture other items, although a smaller number go directly to consumers.
The industry touches nearly every goods-producing sector world-wide and contributes approximately 7% of the world’s gross domestic product (GDP).
What we do
Opportunities are vast, and we’d welcome the opportunity to talk through any risk that falls within the chemical sector.
There is a diverse range of chemical industries that can be categorised as follows:
Basic chemicals:
- Organic chemicals – gases, lubricants, resins & waxes, polymers, plastics, and synthetic rubbers
- Other derivatives – synthetic rubbers, surfactants, inks & dyes, pigments, resins, and explosives
- Inorganic chemicals – salt, chlorine, caustic soda, acids, epoxies, silicon, titanium dioxide (used as a whitener), hydrogen peroxide (bleach), sodium bicarbonate & fertilisers
Speciality Chemical:
- Electronic chemicals
- Industrial gases
- Adhesives & sealants
- Paints & coatings
- Industrial cleaning chemicals
- Catalysts
Life Science Chemicals
- Agrochemicals
- Diagnostic chemicals
- Healthcare products
- Vitamins
- Pesticides, herbicides and fungicides
Consumer care product industries
- Soaps, detergents, bleaches & laundry aids (emulsifiers)
- Hair and skin care products
- Fragrances
- Cosmetics
- Fibres (nylon)
Chemical risks remain vulnerable to the same threats as any other company, including acts of nature (earthquakes, hurricanes, tornadoes, lightning strikes, serious flooding), fire and explosion, and machinery breakdown.
Chemical manufacturing frequently involves significant hazards where, should the worst happen, the consequences would be significant and include off-site effects. The probability of the worst-case incidents occurring is low due to the significant risk management controls in place. The assessment of these risk management controls is complex; chemical manufacturing can fall outside insurers’ risk appetite based on hazard profiles alone.
Our dedicated chemical industry practice specialists understand the unique risks, threats, and opportunities presented in the chemical space. They can help assess the adequacy of the risk engineering to ensure the customer gets exclusive terms.
Receipt of key information will be critical in determining the best terms, none more so than copy surveys focusing on performance safety management, control of change, and preventative maintenance. A five-year loss record, schedule of values, and wording are also essential.
Capacity
USD $25 million
Speak to one of our specialist underwriters
FAQs
What opportunities exist within the chemical sector for insurance coverage?
Canopius understands that the chemical industry is always growing. This diverse sector is categorised into basic chemicals, speciality chemicals, life science chemicals, and consumer care product industries.
We offer tailored insurance solutions to address the unique risks presented by each sector.
What are the main threats faced by companies in the chemical industry, and how does insurance help mitigate these risks?
There are multiple threats in the chemical industry, from spillages to acts of nature. In the event of a worst-case scenario, the consequences can be significant, including off-site effects. Insurance plays a crucial role in mitigating these risks by providing financial protection and support in the event of a loss.
Our dedicated chemical industry practice specialists understand the unique risks, threats, and opportunities presented in the chemical space. They work closely with clients to assess risk engineering adequacy and ensure exclusive terms that meet their specific needs.
What factors should be considered when arranging chemical insurance?
When choosing chemical insurance, it’s essential to consider your company’s specific needs. Look for coverage that comprehensively addresses the unique risks associated with chemical production and handling, including protection against hazards like fire, explosion, environmental contamination, and liability claims.
We have specialists on hand who can guide you through our options to ensure you’re getting the right solutions for you and your business.
