3 Most Expensive Asbestos-Related Insurance Claims: Lessons for Businesses
- Scott Bradley
- Dec 5, 2024
- 3 min read
Asbestos-related insurance claims have cost companies and insurers billions of pounds, but the financial impact is only part of the story. Behind every claim are countless lives forever changed by preventable diseases. Below, we examine three of the most expensive asbestos-related claims in history, the factors behind them, and the lessons they provide for businesses today.
1. Halliburton: £4 Billion Settlement
Halliburton, a global energy and engineering company, inherited a legacy of asbestos liabilities when it acquired Dresser Industries in 1998. Dresser had manufactured asbestos-laden insulation materials, exposing workers, contractors, and even their families to deadly asbestos fibres. For decades, employees worked in hazardous conditions, unaware that every breath they took in their workplaces carried a life-threatening risk. Many victims were diagnosed with mesothelioma or asbestosis years later, often leaving their families to bear the emotional and financial burden of their illness.
By 2004, Halliburton faced hundreds of thousands of claims. The company resolved these with a £4 billion settlement, establishing a trust to compensate victims and cover legal expenses. This case serves as a stark reminder of the devastating consequences of acquiring a company without fully understanding its liabilities.
Lesson Learned: Due diligence during mergers and acquisitions is critical. Companies must uncover and address any asbestos liabilities in acquired businesses to prevent financial and reputational harm—and to protect lives.
2. Johns-Manville Corporation: £2.5 Billion Settlement
As one of the largest manufacturers of asbestos products, Johns-Manville Corporation profited for decades while its employees and customers unknowingly faced deadly risks. Despite internal documents from the 1930s warning of the health dangers, the company continued to produce asbestos insulation, cement, and roofing materials. Workers inhaled asbestos dust daily, and many unknowingly carried the fibres home on their clothing, exposing their families. Years later, thousands of people developed mesothelioma, asbestosis, or other life-threatening diseases, with entire communities mourning multiple losses.
The lawsuits eventually overwhelmed Johns-Manville, forcing the company into bankruptcy in 1982. A £2.5 billion trust fund was established to compensate victims. This case marked a turning point in corporate accountability for asbestos-related harm and highlighted the consequences of prioritising profits over safety.
Lesson Learned: Transparency and prioritising worker safety are essential. Ignoring known risks endangers lives, devastates communities, and irreparably damages businesses.
3. W.R. Grace & Co.: £1.8 Billion Settlement
For decades, W.R. Grace & Co. operated a vermiculite mine in Libby, Montana, that was heavily contaminated with asbestos. Workers at the mine, along with Libby residents, were exposed to asbestos fibres that permeated the air, homes, and even local schools. The result was an epidemic of asbestos-related illnesses in the community, with families losing multiple members to diseases like mesothelioma. Entire neighbourhoods were left grappling with grief, financial hardships, and long-term health issues.
W.R. Grace faced thousands of lawsuits stemming from its operations and the use of asbestos in its building materials. After filing for bankruptcy in 2001, the company reached a £1.8 billion settlement by 2014, creating a trust to compensate victims. Libby’s tragic experience remains a sobering example of what can happen when safety standards are ignored.
Lesson Learned: Businesses must comply with environmental and safety regulations—not just to avoid liabilities, but to protect the health and well-being of employees and surrounding communities.
Key Takeaways
These high-profile cases reveal the devastating financial and human costs of asbestos mismanagement. They have also shaped today’s regulations and standards, highlighting:
The consequences of negligence: These companies demonstrated the catastrophic impact of ignoring asbestos risks, from widespread illness to financial ruin and irreparable reputational damage.
The importance of regulation: These cases spurred stricter asbestos safety guidelines, mandatory surveys, and worker protection laws to prevent similar tragedies in the future.
A need for proactive management: Beyond compliance, businesses must actively assess and mitigate asbestos risks, ensuring transparency and safety to protect lives and prevent liabilities.
By addressing asbestos risks head-on, businesses can safeguard health and safety while avoiding the immense financial and human liabilities associated with neglect.
Take Action Today: Don’t leave asbestos management to chance. Schedule an asbestos survey with our team of experts to ensure your business complies with regulations, protects lives, and mitigates risks.
