On December 30, 2024, a chemical spill at the Southwest Cheese factory in Clovis, New Mexico, served as a stark reminder of the potential hazards manufacturers face. An equipment malfunction led to the mixing of 8.67 gallons of acid with 0.61 gallons of chlorine, resulting in the release of toxic gas and injuring 20 employees. The aftermath saw 14 individuals hospitalized, with two in critical condition. Yikes!

Why Pollution Liability Insurance Matters

This incident underscores the critical importance of having pollution liability insurance for manufacturers. Such a policy can shield companies from the financial fallout associated with environmental mishaps. Key coverage components include:

• Cleanup and Remediation: Removing hazardous substances and restoring the environment can be a costly endeavor.
• Legal Expenses: Lawsuits may arise from injured workers, government entities, or other affected parties.
• Medical Costs: The treatment for employees impacted by the spill can run into substantial amounts.
• Business Interruption: Temporary factory closures can result in significant loss of revenue.

Without adequate insurance, the financial repercussions of an event like this could be devastating for a business. Southwest Cheese, a global manufacturer specializing in hard cheeses and whey protein ingredients, has always prioritized employee health and safety. Following the incident, they swiftly closed off the affected area and activated their incident response plan.

As the investigation by the Curry County Sheriff's Office and other agencies unfolds, this incident serves as a vital lesson on the importance of being prepared. In the world of manufacturing, it's better to have pollution liability insurance and not need it than to need it and not have it. After all, while cheese may be a delight, dealing with spills certainly isn’t!