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Cravens Warren

Serving the risk management and commercial insurance needs of business. Cravens Warren, founded in 1946, has been serving the insurance needs of... read more

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    Houston, TX 77040
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West Fertilizer Co. Had $1M in Liability Insurance

By Cravens Staff | May 14, 2013

Liability insurance is one of the primary components of any commercial insurance program. Although many companies have liability insurance, an often overlooked issue is the amount of coverage. In reviewing new clients existing insurance coverage, we often find that their liability limits are dangerously inadequate.

This can be the result of various circumstances, but very often, it is the result of changes and growth of the company that have never been addressed in relation to their coverage.

A recent example of severely inadequate coverage is the recent explosion of the West Fertilizer Co. in West, Texas. Chad Hemenway from PropertyCasualty360 recently wrote an excellent article outlining some of the facts and analysis of the even in relation to the company's insurance coverage;

The West Fertilizer Co., site of a massive explosion last month that killed 15 people and damaged or destroyed more than 100 homes, two schools, and multiple businesses, carried $1 million in liability insurance, PC360 has confirmed.

The coverage was provided by United States Fire Insurance Co., The Dallas Morning News first reported. United States Fire Insurance Co. is a member of Morristown, N.J.-based Crum & Forster, which is part of the Fairfax Group.

Daniel Keeney, a spokesman for the Adair Grain Inc., says he is not aware of any other insurance for the West, Texas fertilizer retailer. Adair Grain, owned by the Adair family of West, is the parent company of West Fertilizer, which is a $4 million/year operation, Keeney adds.

A spokesman at Crum & Forster could not immediately be reached for comment.

Several lawsuits have been filed against Adair Grain since the force of the April 17 blast leveled some surrounding homes. Multiple companies within the W.R. Berkley Corp. group of insurers are among those who have filed suit, claiming negligence on the part of the Adairs. The subrogation suit looks to recoup money paid by Berkley to insureds including individuals, a bank, a car dealership, a TV and appliance store, a bakery, an auto parts store, two churches and an inn.

Link to the full article: West Fertilizer Co. Had $1M in Liability Insurance