Pollution Exclusions that Are Subject to an Express Exception for the “Products Hazard” Provide Coverage for Pollution Attributable to Escaping Raw Materials, Incomplete Products, and the Insured's Final Products

Abstract

For those insureds whose policies contain a products hazard exception to the policy's pollution exclusion, the exception permits pollution coverage for well beyond situations involving classic product liability. As a result of the broad definition of “Your Product,” the products hazard exception permits coverage for pollution damages arising not only out of the insured's ultimate product, but also arising out of any part of the insured's stock in trade that escapes from the insured's control and leads to pollution away from the insured's premises.