Insurance to cover plant explosion costs: ConAgra
June 19, 2009
by Bryan Salvage
NEW YORK — Last week’s explosion at ConAgra Foods’ Slim Jim plant in Garner, N.C., which killed three people and injured 38 workers, will not have a major affect on its fiscal 2010 financial results, the company said in an Associated Press news story.
"The company maintains comprehensive property and general liability insurance policies with very significant loss limits that it believes will provide substantial and broad coverage for the currently foreseeable losses arising from this accident," the company stated in a Securities and Exchange Commission filing.
Federal investigators said that on June 18 a contractor clearing a natural gas line during a water heater installation likely released a flammable cloud that ignited the blast at the facility. Last week, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives also said natural gas was to blame for the explosion.
ConAgra stated in its Securities and Exchange Commission filing on June 18 that it continues to analyze the potential impact to its financial performance and will share additional details when it releases fourth-quarter results, possibly on June 25.