Products pollution liability insurance is essential for any manufacturer who produces products that may have the potential to cause pollution. It's an important extension to a regular products liability policy which probably doesn't provide insurance cover in the event of pollution occurring. Products pollution liability insurance provides specific coverage for bodily injury and property damage which are caused by the discharge of pollutants from the product. Additionally, this type of policy also covers the cost of cleaning up the pollution.
Distributors of potential pollutant products also need to purchase this type of insurance. It is possible that as the distributor, you are liable for the situation, and even if the manufacturer is considered responsible, you may have difficulty is addressing the situation if the manufacturer of the product is based outside the U.S.
When considering buying a products pollution liability insurance policy you need to carefully assess the cover that is afforded and to take account of any exclusions. Always get a full copy of the policy wording first and study it carefully.
A good products pollution liability policy will offer the following benefits, either as a regular inclusion, or as an addition to the policy.
* Worldwide coverage - essential if your products are distributed outside the U.S.
* The occurrence of pollution damage while the product is being loaded or unloaded
* First party liability coverage during transportation
* Third party liability coverage during transportation
* Protection against pollution that occurs on your own or rented premises due to accidental spillage
* Protection against water, ground or air pollution arising from spillage in your premises
You can usually obtain cover up to $10 million, depending on your requirements, although larger limits can be arranged. Pricing depends on various factors, such as the type of product.
Examples of the types of product that can cause pollution and for which you need to buy products pollution liability insurance include, but are not limited to:
* all forms of paints, inks and varnishes.
* fuels such as gasoline, oil, ethanol
* all types of lubricants
* all types of solvents
* soaps and detergents
* fertilizers and similar products.
Remember though that there are many items that carry or contain the above listed products. Things such as container tanks, drums and a range of machinery has residues of the product, even when empty and can therefore still create a pollution risk. Pollution doesn't only result from spillage of a liquid. Solids can also be responsible for pollution. Examples include plastic and rubber goods, neither are biodegradable.
To summarize, if you are a manufacturer or distributor of a product or products that are capable of causing pollution, then take a look at your current products liability policy to make certain it includes pollution coverage. If you find it doesn't, or is specifically excluded, then you need to urgently contact your liability insurance broker, agent or insurance provider to arrange to get the insurance cover in place; you never know when you may need the protection.
Distributors of potential pollutant products also need to purchase this type of insurance. It is possible that as the distributor, you are liable for the situation, and even if the manufacturer is considered responsible, you may have difficulty is addressing the situation if the manufacturer of the product is based outside the U.S.
When considering buying a products pollution liability insurance policy you need to carefully assess the cover that is afforded and to take account of any exclusions. Always get a full copy of the policy wording first and study it carefully.
A good products pollution liability policy will offer the following benefits, either as a regular inclusion, or as an addition to the policy.
* Worldwide coverage - essential if your products are distributed outside the U.S.
* The occurrence of pollution damage while the product is being loaded or unloaded
* First party liability coverage during transportation
* Third party liability coverage during transportation
* Protection against pollution that occurs on your own or rented premises due to accidental spillage
* Protection against water, ground or air pollution arising from spillage in your premises
You can usually obtain cover up to $10 million, depending on your requirements, although larger limits can be arranged. Pricing depends on various factors, such as the type of product.
Examples of the types of product that can cause pollution and for which you need to buy products pollution liability insurance include, but are not limited to:
* all forms of paints, inks and varnishes.
* fuels such as gasoline, oil, ethanol
* all types of lubricants
* all types of solvents
* soaps and detergents
* fertilizers and similar products.
Remember though that there are many items that carry or contain the above listed products. Things such as container tanks, drums and a range of machinery has residues of the product, even when empty and can therefore still create a pollution risk. Pollution doesn't only result from spillage of a liquid. Solids can also be responsible for pollution. Examples include plastic and rubber goods, neither are biodegradable.
To summarize, if you are a manufacturer or distributor of a product or products that are capable of causing pollution, then take a look at your current products liability policy to make certain it includes pollution coverage. If you find it doesn't, or is specifically excluded, then you need to urgently contact your liability insurance broker, agent or insurance provider to arrange to get the insurance cover in place; you never know when you may need the protection.
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