Insurance requirements

Liability reduction. Facilities are responsible for their wastes from cradle-to-grave. By eliminating or reducing waste generation, future liabilities can also be decreased. Additionally, the need for expensive pollution liability insurance requirements may be abated. 

An experienced candidate toller probably carries the basic insurance required for the industry but contracts are typically dependent upon proof of adequate coverage. Depending on the anticipated contract terms and the financial assessment of both firms, other insurance or bonds may need to be evaluated. These may address business interruption, third party liability, or other identified loss potential. 

Insurance requirements are stipulated in contracts between tollers and client companies. Often, the toller is required to show proof that it obtains and maintains specified insurance coverage. Minimum amounts may be set for ... 

Insurance required under non-prequalification should not be less than 1,000,000. Waivers for a lesser amount of insurance must be cleared through the purchasing manager. 

All lower tier subcontractors engaged by a contractor/subcontractor providing services to the host organization will be qualified in accordance with this procedure, the same as the contractor/subcontractor, with particular emphasis on the prequalification form, insurance requirements, and safety rules. A qualified contractor/subcontractor file shall be maintained by purchasing for each lower tier subcontractor employed by a contractor/subcontractor. 

Heaters and furnaces should also be designed in accordance with standards and codes. Boilers and heating units must be inspected periodically in accordance with codes, insurance requirements and state regulations. Proper controls, interlocks and fail-safe instnunentation must be provided. The heaters should also be provided with sight glasses for flame observation, monitoring devices for flame-out detection, and temperature alarms. 

While the above methods control the level of dissolved and suspended solids in the boiler, it will still be an insurance requirement to operate the main blowdown valve periodically. 

A designer of relief systems must be familiar with governmental codes, industrial standards, and insurance requirements. This is particularly important because local government standards may vary. Codes of particular interest are published by the American Society of Mechanical Engineers, the American Petroleum Institute, and the National Board of Fire Underwriters. Specific references have already been cited. It is recommended that relief designers carefully consider all codes and, where feasible, select the one that is most suited to the particular installation. 

Floating vessels for offshore operations offer reduced installation costs but also present additional vulnerability factors. All floating structures must ensure buoyancy integrity is maintained otherwise the vessel may sink with catastrophic results. Similarly propulsion are provided at some installations to provided position stability. All major vessels are required by insurance requirements and most marine regulations to maintain buoyancy systems and loss of position stability will impact ongoing operations. Both of these systems can therefore be considered critical support systems and must be evaluated for risk and loss control measures either thorough duplication and protection measures or a combination of both. 

There is no national agreement on technical standards for grid interconnection, insurance requirements or reasonable charges for the interconnection of distributed generation. Vendors of distributed generation equipment need to work to remove or reduce these barriers. The Starwood hotel chain faced utility efforts in 2003 to block the installation of a... 

There is no national agreement on technical standards for grid interconnection, insurance requirements, and reasonable charges for interconnection or distributed generation. 

Expenses, as outlined in Chap. 8, for various types of taxes and insurance can materially affect the economic situation for any industrial process. Because modem taxes may amount to a major portion of a manufacturing firm s net earnings, it is essential that the chemical engineer be conversant with the fundamentals of taxation. For example, income taxes apply differently to projects with different proportions of fixed and working capital. Profitability, therefore, should be based on income after taxes. Insurance costs, on the other hand, are normally only a small part of the total operational expenditure of an industrial enterprise however, before any operation can be carried out on a sound economic basis, it is necessary to determine the insurance requirements to provide adequate coverage against unpredictable emergencies or developments. 

Waste disposal is a serious problem for many chemical plants. The EPA initiative that has greatly curtailed land disposal has had a great effect on waste disposal. The 1984 Resource Conservation and Recovery Act (RCRA) amendments have also made it more difficult to dispose of solid wastes. In addition, RCRA required all interim status hazardous-waste facilities to meet ground-water monitoring and insurance requirements by late 1985. This included hazardous-waste surface impoundments. Since 1988, a double liner and leachate collection system have also been required. 

The annual insurance cost for ordinary industrial concerns is approximately 1 percent of the capital investment. Despite the fact that insurance costs may represent only a small fraction of total costs, it is necessary to consider insurance requirements carefully to make certain the economic operation of a plant is protected against emergencies or unforeseen developments. 

The major insurance requirements for manufacturing concerns can be classified as follows ... 

On an average basis, insurance companies pay out loss claims amounting to 55 to 60 cents for each dollar received. The balance is used for income taxes, salaries, commissions, administrative costs, inspection costs, and various overhead costs. Theoretically, a saving of 40 to 45 cents per dollar paid for insurance could be achieved by self-insurance. If insurance requirements are great, this saving could amount to a very large sum, and it would be worthwhile to consider the possibilities of self-insurance. 

Insurance industry observers have suggested that one reason for setting up a captured insurance company is some excess insurers require firms to have basic insurance in order to get an excess policy (5 10). 

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