Helping shield your company from California Prop 65 lawsuits
California Proposition (Prop) 65 was passed into law in 1986 and
requires product manufacturers, distributors, and formulators to provide
“clear and reasonable” warnings on products sold in California that
contain chemicals known to be carcinogenic, or to cause birth defects or
other reproductive harm—if exposure to those chemicals from the
product, exceeds the safe harbor level. Companies selling
products have paid millions of dollars in fines and penalties for
alleged failure to properly provide a warning label for consumers.
General liability policies, products liability policies, and pollution
liability policies do not respond to such claims, and until now there
has been no insurance to provide protection to companies who are named
in a one of these lawsuits.
Wells Fargo Insurance has developed the first liability insurance
program tailored to provide protection for product manufacturers,
distributors, and formulators of products that contain any of six
plasticizers covered under the Prop 65 definition. These plasticizers
are used to add flexibility to a whole host of commonly used products.
Registration provides you with a tutorial; a self assessment
based on the information in the tutorial; and an Insurance Application
and Acknowledgement form that can be submitted online to Wells Fargo.
California Proposition 65 Facts
California Proposition 65 requires product manufacturers,
distributors, and formulators to provide “clear and reasonable” warnings
on products sold in California that contain chemicals known to be
carcinogenic, or to cause birth defects or other reproductive harm.
Enforcement of this regulation occurs through civil lawsuits. Unlike
most other regulations, which require the plaintiff to prove harm
related to the claim, private citizens who sue are not required to do
so—and many claims are filed by “bounty hunters.”
If a lawsuit against a manufacturer or distributor is successful, the
result can be costly settlement expenses, including defense costs,
plaintiff’s attorney costs, civil penalties, and payments in lieu of
civil penalties. These expenses can be costly— and there is no
requirement that the plaintiff prove intent or actual violation for a
company to be named in a lawsuit. Our specialized coverage for Prop 65
will help companies have peace of mind that they are protecting their
business from these onerous suits.
Protect your business from plasticizer lawsuits under California
Companies can mitigate their risk by securing Prop 65 coverage to
provide protection from the costs associated with defending a Prop 65
lawsuit specific to plasticizers, including:
FINES PENALTIES LEGAL COSTS EXPENSES
This coverage is offered through Wells Fargo Insurance and will be
serviced by Safehold Special Risk, Inc. a division of Wells Fargo
Insurance. Safehold offers a diverse set of special risk insurance
products with services provided by professionals with experience in each
specific area of risk.
For more information about the program, contact:
Vice President Technical & Industry Affairs, SPI