Products Pollution

What does it cover?

The products pollution policy provides coverage for third party bodily injury, property damage and cleanup coverage for pollution conditions cause by the failure of the insured's product. Policy covers sudden, accidental and gradual pollution. 

Cost and applications:

• Premiums start at $10,000.
• Deductibles start at $5,000.
• Limits are available to $10,000,000.
• Please click here to download the Products Pollution application.

Claim Scenarios

NOTE: The claims scenarios summarized are offered only as examples. The examples are not intended to establish any standards of care or to serve as legal advice appropriate for any particular factual situations. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy.

1. A chemical distributor sold a cylinder of chlorine gas without a safety plug. As a result, a chlorine gas release occurred from which two contractors performing ground maintenance sustained bodily injuries. Records indicated that the cylinder showed no signs of damage when the insured delivered it. The claim has thus far been deferred to the cylinder and gas manufacturers.

Outcome - The chemical distributor paid over $450,000 for legal defense, bodily injury and property damage.

2. Insured manufactures barrels used for containing acids and chemical solvents. A chemical distributor purchased a number of barrels to supply product to their customers. A customer advised the chemical distributor several of the barrels ruptured at their facility while being moved. It was later discovered, during the barrel manufacturing process, there was a problem with the welding of the seams.

Outcome - The chemical release at the customer’s premises and subsequently into the storm drains resulted in an expensive clean up.

3. A manufacturer or fuel tank dispensers was brought into a claim when a customer who was fueling their car suffered bodily injury and property damage from overflowing gas. The nozzle did not shut off properly, and the overflowing gas caused damage to the vehicle as well as alleged bodily injury to the person. Additionally, they claimed damages arising from failure to continue their trip, etc.

Outcome - The claim was ultimately settled for a negligible amount but legal expenses alone cost the manufacturer over $50,000.

Optional coverage enhancements:

• Provided either stand alone or by endorsement to the CGL.
• Occurrence or claims made basis.

Examples of who buys:

• Industrial chemicals
• Adhesives
• Aerosols
• Biodiesels
• Lubricants
• Plastics
• Solvents
• 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. 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.