General Liability & Products Pollution Coverage for Manufacturers and Distributors

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.

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.

• 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.