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Hazards: Technology and Fairness (1986)

Chapter: Liability Insurance

« Previous: Tower Chemical
Suggested Citation:"Liability Insurance." National Academy of Engineering. 1986. Hazards: Technology and Fairness. Washington, DC: The National Academies Press. doi: 10.17226/650.
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Page 175

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ECONOMIC, LEGAL, AND PRACTICAL PROBLEMS IN HAZARDOUS WASTE 175 CLEANUP AND MANAGEMENT original typesetting files. Page breaks are true to the original; line lengths, word breaks, heading styles, and other typesetting-specific formatting, however, cannot be About this PDF file: This new digital representation of the original work has been recomposed from XML files created from the original paper book, not from the retained, and some typographic errors may have been accidentally inserted. Please use the print version of this publication as the authoritative version for attribution. Additionally, solid chemical wastes were dumped and burned at the site in a pit dug into the water table. This left high concentrations of toxic pesticides in the soil. A major concern at the site was the potential for contamination of the deep aquifer. Because of an immediate threat to human health and the environment, EPA and the state performed an emergency removal at the site in 1983, at a total cost of $750,000. About a million gallons of water from the pond were filtered to meet state standards, then discharged to surface waters. Contaminated sediments were excavated and shipped out of state for disposal. The ponds were capped to discourage leaching of any residual hazardous materials. Contaminated soils from a dumping pit were removed, and the cavity was capped. Studies are under way to determine what further cleanup actions are necessary. The owner of Tower Chemical Company has filed for bankruptcy, so it is unlikely that we will see any of the money from a $10-million judgment in the case. Liability Insurance In addition to closure and postclosure responsibility, companies are required to have liability insurance. Nationwide, about 5,100 facilities for the treatment, storage, and disposal of hazardous waste are subject to "sudden liability" insurance requirements to cover accidents and spills. Another 1,000 surface impoundments, landfills, and land treatment facilities are required to have "nonsudden liability" insurance, which covers leaks and other gradual or ''invisible" forms of contamination. In Florida, there are 60 hazardous waste treatment, storage, and disposal facilities required to have sudden liability insurance, and 20 of these also must have nonsudden liability insurance. The insurance market is in turmoil now as "sudden and accidental" coverage is excluded from new comprehensive general liability policies.1 Policies that now contain this coverage are being canceled or are not renewed. Markets offering sudden liability coverage are shrinking, premiums are 1 Comprehensive general liability provides coverage for third party bodily injury, which includes sickness and disease, and property damage. Products and completed services or operations performed by the insured are among the most important areas of potential liability covered. Comprehensive general liability provided general coverage against pollution liability up to 10 years ago when the policy was amended to provide "sudden, accidental occurrences coverage" and to delete "nonsudden and gradual coverage." "Sudden pollution coverage" has recently been deleted from policies, and the new comprehensive general liability form for January 1, 1986, deletes all coverage for exposure to pollution.

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"In the burgeoning literature on technological hazards, this volume is one of the best," states Choice in a three-part approach, it addresses the moral, scientific, social, and commercial questions inherent in hazards management. Part I discusses how best to regulate hazards arising from chronic, low-level exposures and from low-probability events when science is unable to assign causes or estimate consequences of such hazards; Part II examines fairness in the distribution of risks and benefits of potentially hazardous technologies; and Part III presents practical lessons and cautions about managing hazardous technologies. Together, the three sections put hazard management into perspective, providing a broad spectrum of views and information.

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