Foreign risk management challenges will be a growing concern for chemical firms, according to Ernie Salas, vice president, Specialty Casualty & Construction, Chubb.
By 2019, the U.S. is expected to run a $77 billion trade surplus in chemicals, according to the American Chemistry Council.
“As U.S. chemical manufacturers and distributors of all sizes significantly increase their business overseas, they are facing challenges posed by product liability issues, environmental regulations and widely varying insurance laws,” according to Salas, author of a new Chubb advisory on the topic. “These firms need to identify such risks to their foreign operations and develop a robust strategy to manage them.”
The Chubb advisory, “Growing Global Chemical Trade Brings New Risks for U.S. Firms,” offers risk management and insurance strategies to adequately address the exposures of doing business abroad. Specifically, the advisory examines the following key areas for consideration:
- Product Liability;
- Emerging Environmental Regulations;
- Transportation and Disposal;
- Emerging Chemicals;
- Filling Insurance Coverage Gaps.
“A preemptive approach that includes working with an insurer that understands the chemical industry and has a strong global presence can potentially mitigate exposures and let companies focus on making the most of their new opportunities,” said Salas.
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