As noted by USA Today, a fire broke out in the butter storage room of a dairy plant in Portage, Wisconsin, on January 2^nd, spreading melted butter throughout the facility and into a nearby historic canal. Crews responding to the buttery incident at the Associated Milk Producers plant deployed the same materials used in oil spills to clean up the mess.

“The spilled butter clogged storm drains and the Portage Canal, a historic waterway, with butter floating on top of the water in a 30-by-20-foot area, local officials said. No one was injured in the incident, and a hazmat team used boom absorbents used to control oil spills to clean up about 20 gallons of butter from the canal. The environmental impact from this incident has been minimal, so far, the Wisconsin Department of Natural Resources said in a statement, but officials say butter spills can have negative effects.

“They liken the impact of the butter to petroleum products,” said Karim Jaroudi, Manager, Environmental, Burns & Wilcox in Ontario. “The odor is considered a pollution event, and there could be damage to plants and animals. Anything that enters the environment that is not indigenous to it is going to be considered a pollutant and has to be remediated. When a contaminant enters a waterway, that is an even-worse-case scenario.”

While the spill was 99% contained on site, it is the sort of accident that on a larger scale could lead to thousands or even millions of dollars in loss for the company responsible, said Timothy Donnellon, Senior Broker, Environmental, Burns & Wilcox, Charleston, South Carolina. Many food companies fail to purchase Pollution Legal Liability Insurance as they may not deem their products as pollutants but if insurance coverage or this kind was covered, it would pay for these costs versus the company absorbing them.

Even if a food producer is not producing something that is deemed as a “pollutant”, many of their products may have by-products that if leaked into water systems, can be very hazardous. As a result, it is important that when obtaining commercial insurance, companies consult with a skilled and educated insurance broker. A broker with this knowledge would provide guidance on areas of this kind to ensure that the company is properly covered or at least notified of the importance of this coverage before they finalize their policy.

For a business owner, it is so important to develop a relationship with an insurance broker that has experience and knowledge so they can bring that to the table when you are finalizing your policy. This makes all the difference in the world. We always hope that you never have to file a claim, but at least if you do, we want to ensure you are covered for any incidents if they do come about.

At Leaders Insurance, we have a team of skilled brokers in the commercial area. If this story makes you wonder what your policy includes, we welcome your call so we can review your existing policy and ensure you have pollution liability coverage. Don’t be left without the coverage you need, when you need it most. We take the time to understand your needs and can help you as you find what is right for you. We look forward to assisting you with all of your insurance goals and requirements. Contact Us today.