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Hazards of the Deal

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Today, a manufacturer can expect to pay between 6 percent and 10 percent in premiums for literally hundreds of millions of dollars, a far cry from the days of $5 million insurance limits. Kemper Environmental, in Princeton, New Jersey, offers $200 million in insurance capacity; AIG and ECS offer $100 million; and Zurich and Chubb, $50 million. Stack the limits of these insurers with others offering more modest capacity, advises Peter Walther, a managing director at New York­based broker Marsh Inc.


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