Hi,
I have a question. Currently in my country there is a case where an industrial (chemical) company was burned down due to an intensive fire after an accident. Some chemical substances may have been released into soil or air and caused damage to other companies, farmers and surrounding villages and its inhabitants.
There is speculation that the insurance company may not compensate all liabilities or may not compensate at all.
So, many people who's property rights have been infaded might see any chance for compensation vanish.
How would such industrial disasters be handled in a libertarian society?
My take,
First, why is the insurer refusing to pay? The consequences of failing to uphold a contract in a libertarian society would be harsh.
Second, find out who caused the accident. A worker? Well, he better be insured! Faulty management decisions? Well, they better be insured! No specific act is the cause? Than shareholder are responsible in full, and not only to the amount of capital they invested.
If the funds are not enough, well the local will have to take the loss.
Same question as above. They have to compensate all liabilities, or else they've broken the contract with the aforementioned industrial/chemical company.
The individuals harmed in the accident would be fully compensated. What's going to happen in your country, most likely, is that the government will claim ownership of some of the surrounding land, and it will give the company a break through its monopolized judicial system. That wouldn't happen in a libertarian society.
First, why is the insurer refusing to pay?
There are two scenarios: (1) the conditions of the insurance-contract are not met (they didn't took the precautionary actions as stated in the contract, as well as there might be other chemicals involved they weren't authorized in the insurance-contract. And (2) the insurer only insured upto a certain amount (like 15 mln eur), which is ought to be not enough.
Second, find out who caused the accident. A worker?
According to the news by an alleged transfer of chemicals by a worker in which a spark ignited the substances into a fire. In my country the company usually covers its employees with liability insurances on the working place.
Ill watch what will happen :)
Ah, that's OK than.
If the company covers employer's liability, than it should be the shareholders who pay, but out of their own pocket. That, of course,will not happen where you live, or anywhere else for that matter. But it should...