Dec 16 2008
A while back, we received a call from a company that had developed a spray on insulation using nanotechnology. The company claimed it could dramatically reduce a company’s energy cost by using this spray on insulation. I cannot remember the exact statistics, but it was something dramatic, like one-eighth inch of nano insulation would replace twelve inches of normal insulation.
We took the application to the insurance marketplace and found no insurance carriers willing to provide a product liability policy. We couldn’t understood because we reassured the product liability underwriters that the workers spraying the insulation on the pipes, etc. would be fully clothed in space suits that would not allow any nano particles to be inhaled by the workers.
It was only after reading “Nanotechnology - Small matter, many unknowns” written by Swiss Re did I understand that the concern was not only for the workers, but that the nano particles could potentially be so small that they could attach to dust and later be inhaled by the public. The insurance carriers are concerned that nano could be the next asbestos with regards to insurance claims.
Since there were obvious concerns by consumer advocates, insurance companies and others about the potential risks from nano materials the National Nanotechnology Initiative was set up to coordinate safety research. However, based on the latest report from the National Research Council the NNI plan does not include research goals to help ensure that nanotechnologies are developed and used as safely as possible and fails to provide a clear understanding of nano risks and where it should be in 10 years.
The National Research Council has called for a new plan going beyond federal research to include universities, industry, consumer and environment research groups.
The potential for nanotechnology seems unlimited; however, until entrepreneurs and investors can be fully insured and know that their hard earned assets are protected, the business of nanotechnology will have no choice but to creep at a snale’s pace. And until the product liability insurance carriers have reliable research data concerning the safety of nanotechnology, they will remain wary and cautious.