We suggest that you examine this coverage feature carefully, especially for clients with an elevated pollution risk within the products and completed operations hazard, such as the manufacture of storage equipment or control valves for industrial liquids or other pollution-sensitive products or services.

For such clients, the standard GL provides generous cover for this exposure. Of course, the environmental exclusion still applies to premises liability and other hazards.

For risks with a higher-than-average products and completed operations hazard:

• Verify that the GL carrier has used the standard exclusion. Some carriers use non-standard forms that reduce or exclude all pollution exposures, including this one.
  
  
• Be sure that your underwriter agrees with your coverage interpretation, preferably in writing. Some claims examiners have little experience in pollution losses, so it's preferable to address this issue when placing the risk, rather than after the first loss has been reported. If the claims examiner elects to deny the loss or obtain a legal opinion on coverage issues, the defence of the third-party claim may fall to your client. Environmental losses are usually complex and can be very costly to defend.
  
  

• The "wastes" exclusion in your GL may also apply to the products and completed operations hazard.
  
  

• Most GL policies cover only bodily injury and property damage losses. Government-ordered cleanup costs may be expressly excluded, even in the products and completed operations hazard.
  
  
• Recent changes to the IBC environmental exclusions have further reduced pollution coverage as respects the products and completed operations hazard. Watch carefully for the implementation of these wordings.
  
  

• If suitable cover isn't available from your GL carrier, consider our specialty EIL cover, which we can extend to include the products and completed operations hazard. We can provide limits up to $10 million for most risks.