Dangerous goods demand comprehensive insurance

If you’re in the business of transporting dangerous goods, be it tins of paint, explosives or hazardous chemicals, then you’re right to invest in comprehensive insurance to cover you against the risks associated with your business. “The risk, from an insurance perspective, is the same as that for the transport of any other type of cargo,” says Jason Freeman, director, Eikos Risk Applications, the specialist marine insurance broker. “It’s the consequences of an exposure that make moving these goods so dangerous.” After all, if a truck carrying paints overturns on the highway, there could be civil claims, claims for environmental damage, claims for third party damages, to name but a few. Liability cover is thus both a legislative requirement and a business imperative. But unless you’re fully compliant with the relevant legislation, your insurance policy may not cover you in the event of an accident or a loss. In fact, consignor, consignee and transporter are all required to be fully compliant under the Dangerous Goods Act. “And what defines a ‘responsible party’ under the legislation is very wide. For instance the ‘consignor’ can be the product manufacturer, the product owner, the person acting on behalf of the product owner, or the product custodian. The consignor may or may not be the party that contracts the operator,” says Francine Hattingh, manager: marine liability department. The crux of the matter is that everyone in the dangerous goods supply chain must have their house in order. INSERT & CAPTION It’s the consequences of an exposure that make moving these goods so dangerous. – Jason Freeman