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P a g e
TRINIDAD CEMENT LIMITED
SECTION 8: RISK FACTORS
(Continued)
Increasing insurance claims and expenses could lower the Company’s profitability and increase its
business risk.
As a result of the nature of the Company’s business, it is subject to product liability, property damage, and
personal injury claims and workers’ compensation claims from time to time. Increased premiums charged
by insurance carriers may increase the Company’s insurance expenses as coverage expires or cause the
Company to increase the level of its self-insurance. If the number or severity of claims self-insured by the
Company increases, the Company could suffer losses in excess of its reserves. An unusually large liability
claim or string of claims based on a failure repeated throughout the Company’s mass production process
may exceed its insurance coverage or result in direct damages if the Company were unable or elected not to
insure against certain hazards because of high premiums or other reasons. In addition, the availability of,
and the Company’s ability to collect on, insurance coverage is often subject to factors beyond its control.
Further, allegations relating to workers’ compensation violations may result in investigations by insurance
regulatory or other governmental authorities, which investigations may have a direct or indirect material
adverse effect on the Company’s ability to pursue certain types of business. This, in turn, could have a
material adverse effect on the Company’s business, financial position, results of operations, liquidity and
cash flows.
