PHILADELPHIA, March 10, 2016 /PRNewswire/ -- Chubb today released an in-depth report detailing new and unrecognized environmental risks facing the agriculture industry. The report discusses how these businesses can help reduce pollution risks related to their operations and address potential gaps in insurance coverage.
While the number of U.S. farms has decreased, total U.S. agricultural output has more than doubled since 1948 as farmers have made greater use of chemicals, energy and machinery to substitute for human labor, according to the United States Department of Agriculture. Because of these operational changes, agricultural businesses must now address a dramatic rise in their environmental liability risks.
"Agricultural Businesses Face Unrecognized Environmental Risks" was co-authored by Craig Richardson, Senior Vice President, Chubb Environmental, and Philip Twietmeyer, Senior Vice President, Chubb Agriculture. It is the latest installment in Chubb's series of insurance and risk management perspectives papers for risk managers.
"With increased consolidation and production – and the resulting reliance on fertilizers and other chemicals – the agricultural industry needs to be aware of current and under identified pollution exposures," said Mr. Richardson. "To reduce the threat of environmental risks and potential expensive remediation, companies should conduct a thorough risk assessment of their operations to identify any activities that might result in pollution incidents. They should also work with an insurer to assist them with understanding critical pollution risks and instituting a coverage program that can provide the appropriate pollution insurance while supporting the growing needs of the industry."
Key highlights from Chubb's report include:
- recognizing specific pollution risk associated with fuel, fertilizer, chemicals, and storage tanks;
- addressing increasingly strict environmental regulations at the state and federal level, especially as suburban development increases;
- recognizing the signs of potentially wide-ranging pollution exposures for agricultural co-ops and supporting businesses;
- assessing protection methods, and upgrading insufficient hardware, machinery, storage, and transport vessels; and
- reviewing and implementing a pollution risk control strategy, and securing coverage that addresses all these risks.
To access the full report, please visit our website. The material presented in this report is not intended to provide legal or other expert advice. It is presented as informational only. Readers should consult legal counsel or other technical experts, as applicable, with any specific questions they may have.
Chubb is the world's largest publicly traded property and casualty insurer. With operations in 54 countries, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. The company is distinguished by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength, underwriting excellence, superior claims handling expertise and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London and other locations, and employs approximately 30,000 people worldwide. Additional information can be found at: new.chubb.com.