ManufacturingWhat is a GL/Products Pollution policy?

Products Pollution coverage is a package liability product available to many manufacturers and distributors. A combination GL/Products/Product Pollution Liability policy includes Bodily Injury, Property Damage, and Clean Up coverage for third party claims. The Products Pollution coverage part can be provided by either a stand alone policy or by endorsement to the CGL and is available on an occurrence or claims made basis.

Why is Products Pollution Insurance coverage important?

  • It protects the insured against a product failure that may cause a pollution condition.
  • Many General Liability and Product policies deny coverage for Bodily Injury/Property Damage and Defense arising from the discharge of pollutants from a product.
  • Most General Liability and Product policies deny Clean Up coverage claims that stem from a pollution condition.
  • Distributors may not find protection from the manufacturer. Especially if the manufacturer  is domiciled overseas.

Optional Products Pollution coverage enhancements:

  • Sudden/accidental spill coverage for the insured’s owned/leased premises.
  • Gradual pollution coverage for long term soil/groundwater/air pollution issues coming from the insured’s facility or warehouse.
  • First and third party “over the road”/rail Transportation Pollution Liability
  • Natural resources damage
  • Loading/unloading pollution
  • World wide protection
  • Mold/indoor air quality coverage for the premises
  • Vendors additional insured coverage
  • Blanket waiver of subrogation
  • Waste stream pollution coverage at non-owned locations.

Who buys Products Pollution coverage?

Classes of business typically needing Products Pollution coverage include:

  • Industrial coatings: paints varnish, sealers, and inks
  • Adhesives: glue, caulk, and plastics
  • Aerosols: storage and filling paints
  • Biodiesels: ethanol and alternative fuels
  • Lubricants: grease and other lubes
  • Plastics: pellets, injection molding, etc.
  • Rubber: recycling, injection molding, etc.
  • Industrial soaps
  • Solvents and the raw materials used in the solvent process
  • Fertilizers
  • Products that carry, contain, measure, move, or otherwise process pollutants such as: drums, tanks, pipes, tubing, pumps, valves, and compressor, or other machinery/equipment.

Manufacturers and distributors of imported or domestic products should be covered in the event of a products pollution claim. Distributors selling products made in a foreign country may find that these countries will not defend insurance claims relating to products being sold in the United States.


Package Cost:

Premiums start at $10,000, with limits are available from $1,000,000 up to $10,000,000. Coverage is offered by “A” rated carriers.