Insurers exclude “toxic” substances from policies

February 23, 2006

By Cundy 30/09/2004

Companies may not be covered for liability relating to

a number of common substances.

30 September 2004 – Companies renewing their general

liability insurance policies should make sure they do

not exclude a growing list of “toxic” chemicals

commonly used in the industry.

Insurance broker Aon has created a database of

substances causing concern to insurance firms.

Included are materials familiar to the plastics and

rubber industries: silica, silicone (because of

medical problems caused by breast implants), lead,

urea formaldehyde and also formaldehyde.

Aon’s told PRW: “We are beginning to see

general liability insurers applying exclusions to

policies. All this is being driven by reinsurance

markets in the EU. What they are particularly worried

about it is

the class actions we have seen in the United States.”

Despite major lawsuits in the US, he said reports that

silica could be the “new asbestos” were over the top.

“The best advice is to check with insurance companies

if there are any toxic substance exclusions on their

policies. If there is a possibility that they could be

imposed in future [plastics companies] need to be

aware of these exclusions,” he said.

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