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Prop 65 Protection Plan Gives Vinyl Manufacturers Peace of Mind

Apr 2016

SPI, the plastics industry trade association, has rolled out an insurance product designed to help companies mitigate their risk under California’s Proposition 65.

The Prop 65 Protection Plan and Insurance specifically covers notices of violation (NOVs) and lawsuits alleging failure to warn for DEHP, DINP, DIDP, DBP, BBP, and DnHP. These six phthalates are included on a state list of chemicals for which businesses are required to provide a “clear and reasonable” warning about potential exposure.

The big risk to companies is that pretty much anyone can file a lawsuit alleging a Prop 65 violation. The penalties for violations can go as high as $2,500 per violation per day.

Prop 65 is fertile ground for plaintiffs’ lawyers.

California’s Office of Environmental Health Hazard Assessment notes that “any individual acting in the public interest may enforce Proposition 65 by filing a lawsuit against a business alleged to be in violation of this law. Lawsuits have been filed by the Attorney General’s Office, district attorneys, consumer advocacy groups, and private citizens and law firms.” 

“The Prop 65 Protection Plan allows companies to protect their business from the high costs of responding to a notices of violation,” says Terry Peters, vice president of technical and industry affairs for SPI: The Plastics Industry Trade Association. “Premiums are an affordable, predictable expense and scaled to each company’s specific exposure.”  

In 2015, 788 notices of violation were filed targeting four phthalates (DEHP, DINP, DIDP and DBP). The average settlement was around $65,000 – and the average legal fees added another $55,000-$75,000 to a company’s out-of-pocket costs.

If you are a vinyl manufacturer, you are at risk. A variety of vinyl products were targeted by plaintiffs’ lawyers last year alone, including vinyl gloves, hoses, tubing, hand tools, ear products, and more. 

Get insurance – and peace of mind.

The Prop 65 Protection Plan and Insurance offers coverage for all defense and liability costs associated with NOVs and lawsuits alleging failure to warn for the six Prop 65 phthalates. 

In order to gain coverage, companies must participate in the Prop 65 training program and complete the self-assessment. Details about the program and insurance are available here.