Printer Friendly

ANXIETY OVER ENVIRONMENTAL LIABILITY DOMINATES CONCERNS OF CHEMICAL PRODUCTION COMPANIES

 ANXIETY OVER ENVIRONMENTAL LIABILITY
 DOMINATES CONCERNS OF CHEMICAL PRODUCTION COMPANIES
 NEW YORK, May 22 /PRNewswire/ -- Environmental exposures and liability costs continue to preoccupy U.S. chemical producers, according to a national survey conducted by Alexander & Alexander Services Inc. (A&A) (NYSE: AAL).
 Ninety-five percent of chemical executives cited the need to cap punitive damage awards as their most pressing business concern. For the third consecutive year, product liability reform and court rulings on environmental cleanups were among the leading issues.
 Chemical producers targeted a number of environmental hazards as threats to their financial stability, including modification of the legal doctrine of joint and several liability as well as alternatives for paying environmental claims under Superfund. These issues received 91 and 86 percent ratings, respectively.
 "Many companies are being held principally responsible for cleanups under the Superfund law for national priority list sites," reports Robert H. Moore, A&A senior vice president. "As a result of the joint and several liability doctrine, chemical producers are required to pay substantial financial penalties for relatively small amounts of alleged pollution."
 Two new environmental issues added to this year's survey also figured prominently. Corporate officers' personal and/or criminal liability for pollution exposures received a 91 percent rating. Company liability when acquiring new property was also a concern.
 "Environmental audits for property acquisition were relatively unheard of a decade ago," explains E. Michael Pankonien, vice president and manager of Industrial Hygiene and Environmental Services for A&A of Texas. "Now, these surveys are as common as title searches."
 Pankonien added, "As a result of court decisions, many new owners of contaminated property are paying enormous cleanup costs and fines for unknown environmental impairment."
 Rounding out the top 10 list are the need to contain workers compensation and spiraling health care costs.
 A&A's survey focused on 98 legislative and regulatory issues. Typical respondents were executives in companies with sales of $250 million or more, with half generating sales of at least $1 billion.
 The research was undertaken by A&A Government & Industry Affairs Inc., in Washington, D.C., and Radford Associates, part of the Alexander & Alexander Consulting Group Inc., a human resource management consulting company.
 A&A is a global insurance brokerage, risk management and human resource management consulting company serving clients from offices in more than 80 countries.
 Alexander & Alexander 1992 Survey
 Chemical Production Executives
 10 Leading Public Policy Concerns
 Percents
 Caps on punitive damages awards 95
 Product liability reform to
 establish uniform federal standards 91
 Court rulings on liability coverage for cleanups 91
 Workers comp: Increasing residual market costs 91
 Modification of joint and several liability doctrine 91
 Pollution liability: Corporate officers'
 personal and/or criminal liability 91
 Implementation of workers comp cost-containment strategies 91
 Environmental hazards: Liability of companies
 acquiring of taking over new property 91
 Alternatives for paying environmental claims 86
 Spiraling health care costs 86
 -0- 5/22/92
 /NOTE TO EDITORS: Copies of the report are available from A&A Services Inc., Corporate Communications, 1211 Avenue of the Americas, New York, N.Y. 10036/
 /CONTACT: Cathy Aiello of Alexander & Alexander, 212-840-8500/
 (AAL) CO: Alexander & Alexander Services Inc. ST: New York IN: CHM SU:


SH -- NY025 -- 3287 05/22/92 11:58 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 22, 1992
Words:534
Previous Article:AUCTIONS DRAWING BUYERS BACK INTO REAL ESTATE MARKET, EXPERT SAYS; SOME HOMEBUILDERS BUILDING TO AUCTION
Next Article:DUKE POWER CO. TO REDEEM BONDS
Topics:


Related Articles
Survey by broker reveals concerns of risk managers.
EPA PROPOSES $17,000 IN PENALTIES AGAINST KREHA CORPORATION OF AMERICA FOR VIOLATIONS OF THE TOXIC SUBSTANCE LAW
Risks in the chemical and pharmaceutical industries.
A smooth handoff: challenges in toll processing.
USW Union: DuPont Investor Report Says Chemical Giant Falls Short of Full Disclosure on Teflon-Related Costs; Shareholders Coalition to DuPont Co....
Genetically Engineered Anxiety.
Dow has no green nod for Dahej plant.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters