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
- 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.
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.