What is a GL/Products Pollution Liability 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.
Who Buys Products Pollution Liability?
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.
Why is Products Pollution Liability 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 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.
Coverage Cost
Premiums start at $10,000, with limits are available from $1,000,000 up to $10,000,000.
Contact Beacon Hill Associates
Please call (800) 596-2156 to discuss an account with an experienced team member or submit a form to request more information about our environmental insurance products. BHA is here to help you!
