West Fertilizer was insured for only $1 million, a fraction of estimated losses [View all]

[ErikJ]

West Fertilizer was insured for only $1 million, a fraction of estimated losses

Dallas Morning News, May 3, 13

The West Fertilizer Co., scene of an explosion last month that killed 15 people and injured 200, carried only $1 million in liability insurance.
The cause of the blast is still under investigation. Should the company be found negligent, that amount of coverage probably would pay only a fraction of the claims.

Property damage alone in West could reach $100 million, according to the Insurance Council of Texas, an industry association. The April 17 explosion destroyed an apartment complex and seriously damaged a nursing home and a school. Several hundred homes also sustained damage, with some leveled to the foundation.

An attorney for United States Fire Insurance Co. of Morristown, N.J., confirmed Friday that West Fertilizer had $1 million in liability coverage “with no excess or umbrella coverage.”
Fertilizer facilities like the one in West are not required to have liability insurance that would compensate for damage they might cause, state insurance officials say, even if hazardous material is on hand.
West Fertilizer had reported having 270 tons of ammonium nitrate on site as of the end of last year. Outside experts have said it appears the chemical exploded during a fire on company property.

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http://www.dallasnews.com/news/west-explosion/headlines/20130503-west-fertilizer-was-insured-for-only-1-million-a-fraction-of-estimated-losses.ece