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).
Our capacity
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:
- 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
- Electronic chemicals
- Industrial gases
- Adhesives & sealants
- Paints & coatings
- Industrial cleaning chemicals
- Catalysts
- Agrochemicals
- Diagnostic chemicals
- Healthcare products
- Vitamins
- Pesticides, herbicides and fungicides
- 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.
Speak to one of our specialist underwriters
