How much insurance is required to ship hazardous materials that pose a high risk?

The requirement for insurance when shipping hazardous materials that pose a high risk is set to ensure that there are sufficient funds available to cover potential damages in the event of an incident. High-risk hazardous materials can lead to severe environmental damage, health risks, and significant financial liabilities.

$100 million is the amount specified in regulations as necessary to adequately protect against the potentially catastrophic consequences that can arise from accidents involving the most dangerous substances. This coverage ensures that there are sufficient financial resources to respond to emergencies, clean-up operations, and any claims that may arise from the release of hazardous materials into the environment.

Moreover, being compliant with such insurance requirements not only fulfills regulatory obligations but also demonstrates a commitment to safety and responsible handling of hazardous materials by the shipping company.