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Lawsuit against railroad companies reveals importance of liability insurance

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A company cannot foresee the every situation that general liability insurance calls for, but sometimes it takes a critical situation to realize the need for it.

In Los Angeles, California, Carla Hernandez noticed a lump on her daughter's stomach. Doctors revealed Hernandez' daughter had a form of cancer. When asked if anyone constantly smoked around the girl, Hernandez she replied no, The Associated Press reports.

The rarity of the cancer found in her stomach, as well as other health concerns in the neighborhood, has led the Natural Resources Defense Council to believe that two railroad companies emitting pollution are to blame.

NRDC has filed a lawsuit against Union Pacific and BNSF Railway for violating the Resource Conservation and Recovery Act. They claim that the companies disposed of particles in diesel exhaust, including lead, cadmium, arsenic and other toxic elements, which violates the act.

"We really believe it's hazardous and a product of the rail company's operations," Angelo Logan, executive director for East Yard Communities for Environmental Justice, told the AP. "It's being emitted into the air and the local residents have to bear the brunt of the toxic waste the locomotives and other equipment are producing."
 

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