Texas Fertilizer Plant Only Carried a 1mil GL

[GreenSky]

Since the damages will exceed $100M, would there be any real difference if the company had a $25M umbrella.

Either way, they wouldn't have enough to cover the claims.

Just how much should the agent recommend?

Rick

 

[xrac]

Since the damages will exceed $100M, would there be any real difference if the company had a $25M umbrella.

Either way, they wouldn't have enough to cover the claims.

Just how much should the agent recommend?

Rick

Rick makes a very good point. Even at $25M they would be grossly underinsured in this situation.

 

[whatsa]

Agree that at $25MM it would have still been underinsured. I've seen some of the smaller energy accounts with an explosion exposure carrying at least $50MM, so I would suggest that would be the minimum for a fertilizer plant surrounded by non-owned exposures. I've seen some energy and marine accounts with $500MM and higher limits

 

[2112Greg]

There's guaranteed to be a few without HO or Life coverage In place. Regardless 1mil is like hulk hogan carrying state mins

Maybe you mis-typed, but I would suspect that very few WOULD have LI or HO coverage there. I've driven through West a bazillion times, you hardly even notice it. It's a tiny little place where there are just plain old country folks. Plain old country folks doesn't translate to LI, imo. HO, maybe because it was required, but LI I would suspect is a rare bird in West.

 

[scagnt83]

Definite E&O claim if no documentation of a higher recommendation (imo).

It doesnt matter if the recommended amount would have covered the accident or not. Either way there should have been more available and it should have been recommended by the agent. Hopefully for the agent it was.

 

[jsbarber12]

Rick you do bring up a great point even 25m is underinsured. Which makes it even worse for the agent who wrote this b/s limit. Really what would have been the cost to do at least 10mil , maybe an extra 1500$ a year? It's an issue like this which puts a black cloud on the rest of us .

 

[scagnt83]

It's an issue like this which puts a black cloud on the rest of us .

Not necessarily. We dont know the facts.

Maybe the agent suggested $50m and the client declined and said they think only $1m is enough. We have no clue.


Also, I think this puts a black cloud on the Texas regulatory system more than anything.
I am not one to usually endorse more regulation in business.

But how the hell does Texas not have a minimum coverage limit for a hazardous materials facility??!! WTF?

They have Minimum Coverage Limits for cars but not for hazardous materials plants that can level an entire town?!

 

[bobson]

Rick you do bring up a great point even 25m is underinsured. Which makes it even worse for the agent who wrote this b/s limit. Really what would have been the cost to do at least 10mil , maybe an extra 1500$ a year? It's an issue like this which puts a black cloud on the rest of us .

It would have been way more than $1500 a year.
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Since the damages will exceed $100M, would there be any real difference if the company had a $25M umbrella.

Either way, they wouldn't have enough to cover the claims.

Just how much should the agent recommend?

Rick

I'm surprised an insurance inspector never went into that account and caught the excessive chemical being stored on the property. I had a company inspector tell a plumber account to move his portable 20lb propane tank to a safer location.