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davidn3600

(6,342 posts) Sun May 5, 2013, 01:38 AM May 2013

Texas plant that blew up had only $1 million in liability insurance

McALLEN, Texas (AP) — The Texas fertilizer plant that exploded last month, killing 14 people, injuring more than 200 others and causing tens of millions of dollars in damage to the surrounding area had only $1 million in liability coverage, lawyers said Saturday.

Tyler lawyer Randy C. Roberts said he and other attorneys who have filed lawsuits against West Fertilizer's owners were told Thursday that the plant carried only $1 million in liability insurance. Brook Laskey, an attorney hired by the plant's insurer to represent West Fertilizer Co., confirmed the amount Saturday in an email to The Associated Press, after the Dallas Morning News first reported it.

"The bottom line is, this lack of insurance coverage is just consistent with the overall lack of responsibility we've seen from the fertilizer plant, starting from the fact that from day one they have yet to acknowledge responsibility," Roberts said.

Roberts said he expects the plant's owner to ask a judge to divide the $1 million in insurance money among the plaintiffs, several of whom he represents, and then file for bankruptcy.

http://news.yahoo.com/texas-plant-blew-carried-1m-policy-204535308.html

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These victims are going to get screwed.

4 replies

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Texas plant that blew up had only $1 million in liability insurance (Original Post) davidn3600 May 2013 OP

Shows that insurance is a good thing, which reminds me graham4anything May 2013 #1

What a joke. An auto policy will carry a million flamingdem May 2013 #2

I'll take Things That Go Boom for $1 million Alex n/t Fumesucker May 2013 #3

That's a policy that would cover someone who, say, fell off the roof jmowreader May 2013 #4

graham4anything

(11,464 posts)

1. Shows that insurance is a good thing, which reminds me

Reply to davidn3600 (Original post)

Sun May 5, 2013, 01:59 AM

May 2013

so many people on the Jersey shore who lost their homes during Sandy six month ago, were homes that were summer homes, and I know for a fact, many of the people(some I know personally) didn't feel it was necessary to have any insurance on their home whatsoever, as they had a regular home.

Why wouldn't anyone want insurance enough to cover? Cost should be no object.

The Texas story should be applied to those who whine about a few hundred dollar fine if they don't get health care insurance. Get the insurance because like Texas shows, you never know.
People don't plan on their workplace exploding or having a major illness.

If only federal law applied to what happened in Texas and a company maybe couldn't open for business without proper insurance. But of course the libertarians and states rights people I would assume would howl. And Gov. Perry would howl.

Maybe the people who were hurt and the relatives of those killed should sue Gov. Perry himself.

flamingdem

(39,313 posts)

2. What a joke. An auto policy will carry a million

Reply to davidn3600 (Original post)

Sun May 5, 2013, 02:02 AM

May 2013

an umbrella policy for an individual will carry a million.

Fumesucker

(45,851 posts)

3. I'll take Things That Go Boom for $1 million Alex n/t

Reply to davidn3600 (Original post)

Sun May 5, 2013, 02:08 AM

May 2013

jmowreader

(50,560 posts)

4. That's a policy that would cover someone who, say, fell off the roof

Reply to davidn3600 (Original post)

Sun May 5, 2013, 02:13 AM

May 2013

This is from Galveston rather than West (yes, I looked for West's regulations on this) but I found this:

http://www.galvestonfire.com/pdfs/ExplosivesRegulations.pdf

Line 1 reads: A surety bond or public liability insurance police for $1,000,000 will be required for all permits issued involving explosives.

West probably has the same laws...so, if you want to store 270 tons of explosive like West Fertilizer was storing, a million dollars in liability coverage is all you need.

Here's our problem: West Fertilizer may have been doing everything exactly according to Texas regulation...which would prove the simple fact that "do whatever the hell you want" is not a good way to regulate industry.

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