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 GL and is available on a 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.

Products Pollution coverage enhancements to look for:

  • Sudden/accidental spill coverage for the insured’s owned/leased premises.
  • First and third party “over the road”/rail Transportation Pollution Liability
  • Natural resources damage
  • Loading/unloading pollution
  • World wide protection
  • Mould/indoor air quality coverage for the premises
  • Blanket waiver of subrogation
  • Waste stream pollution coverage at non-owned locations.

Who should buy 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 Republic of South Africa.