Pollution Coverages

Source: iiat.org Published: Nov 28, 2012

ISO's 1998 and later editions of the CGL form contain some important exceptions to the pollution exclusion.

First, an exception to the exclusion eliminates an unintended consequence of excluding pollution incidents

"at or from any premises, site or location which is or was at any time owned or occupied by, or rented or loaned to, ANY insured."

When a contractor adds a property owner as an additional insured while performing work on the property, a strict interpretation of the exclusion on previous editions prevented recovery for a pollution incident that otherwise might be covered on the contractor's policy. In the 1998 and later editions, an exception clarifies that otherwise covered pollution incidents for which the contractor is liable will not be excluded just because the property owner has been added as an additional insured.

Second, an exception covers bodily injury claims arising out of smoke, fumes, vapor or soot from heating equipment in a building, eliminating a nasty uninsured surprise for property owners when a malfunctioning heater causes building occupants to suffer carbon monoxide poisoning.

Last, an exception provides coverage for pollution caused by the

"escape of fuels, lubricants or other operating fluids which are needed to perform the normal electrical, hydraulic or mechanical functions necessary for the operation of mobile equipment,"

thereby mirroring a similar exception to the pollution exclusion in the business auto policy

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