The following brief case studies indicate the types of losses your insured could experience:

Agricultural

• An explosion occurred at an agricultural chemical plant that produced nitrogen based fertilizer. Shrapnel from the explosion punctured storage tanks. A cloud of ammonia gas was released which forced the evacuation of 2,500 people. The pollution liability expense was extensive.

Chemical Distributor

• A chemical distributor sold a cylinder of chlorine gas which did not have a safety plug. As a result, a chlorine gas release occurred from which two contractors performing ground maintenance sustained bodily injuries. Records indicated that the cylinder showed no signs of damage when the insured delivered it. The claim has thus far been deferred to the cylinder and gas manufacturers.

Chemical Storage Facility

• Lightening struck a 1,000,000-gallon tank at a chemical bulk storage facility. The tank ruptured, spilling the contents into a diked area. Although some of the material was salvaged, cleanup costs exceeded $300,000.

Paint Manufacturer

• A paint manufacturer was sued for the release of historical air emissions containing lead particulates — a result of its manufacturing process. Although the company had been cited for excellence in environmental standards, nearby residents claimed that their children had high lead levels in their blood and that lead-contaminated soil on their properties decreased property values. The residents sued to recover damages, including punitive damages. The final settlement was $6 million (including structure settlement for the children in case of future adverse medical conditions).

Products Claim

• While a utility worker was using denatured alcohol to clean tools, a co-worker carelessly tossed a cigarette butt which ignited the alcohol. The utility worker sustained extensive burns. Despite the facts that the alcohol carried flammable warnings on the label and the claimant was not using the product for its intended purpose, a court found the chemical distributor and chemical manufacturer liable. Damages exceeded $650,000.

The examples above are intended to illustrate the wide variety of environmental exposures faced by institutions, business and industry and the many ways in which those exposures can arise. Insurance coverage in any particular case will depend upon the type of policy in effect, the terms, conditions and exclusions in any such policy and the facts of each unique situation. No representation is made that any specific insurance coverage would apply in the above examples. Please refer to the individual policy forms for specific details.