Most agents are aware of the pollution exposures for their contractor clients and many are becoming familiar with Premises Pollution policies for commercial and industrial facilities. However, Products Pollution for manufacturing risks still appears to be a bit of a mystery.
Products Pollution coverage provides liability coverage for Bodily Injury and Property Damage to third parties arising out of a manufactured product. Pollutant Clean Up may be provided separately or included within the definition of Property Damage. Coverage can be provided by either a stand alone policy or by an endorsement to a CGL form and can be offered with either a Claims Made or Occurrence Trigger, depending upon the market and type of product being insured.
Who Should Buy Products Pollution Coverage?
Basically the market is divided into two camps, one termed “soft products” and the other termed “hard products.” Soft products would encompass blending and manufacturing for industries such as chemical, detergent, petroleum, and fertilizer. Hard products would include manufacturers of drums and barrels, tanks and vessels, pipe, pollution control, and filtration devices. In addition to manufacturers, importers and distributors of either hard or soft products should also consider purchasing this coverage.
Some Examples of Products Pollution Coverage Written by Beacon Hill:
- A firm that rents out large industrial pumps. They do not manufacture the pumps, but they do repair and refurbish the pumps. Products Pollution coverage was provided by endorsement to their GL policy.
- A manufacturer of flexible hoses and couplings used in retail gas stations.
- An importer/distributor of water filters used to clean ponds and small lakes.
- A custom blender of specialized lubricants for the petroleum industry.
Is Products Pollution Coverage Easy to Buy?
While not every environmental carrier is willing to offer Products Pollution coverage, there are a number of carriers who will write it. Obtaining a quote is relatively straight forward with a short questionnaire to be completed and supplemented by the applicable ACORD applications.
Is Products Pollution Coverage Expensive?
This is always the last question from an agent—the short answer is no. This type of coverage is relatively inexpensive, with many minimum premiums offered by some carriers dipping below $10,000. Premiums are rated on revenues and the type of products sold.
Tags: Contractors, Exposures, Products Pollution