Pollution Liability Coverage

Businesses that have major pollution liability exposures (ie – manufacturing plants) should pursue a pollution liability policy.  The un-endorsed General Liability policy specifically excludes pollution risks.

So NO Pollution coverage on the GL?

The GL policy has this exclusion, but there are a ‘exceptions’ that add back some pollution coverage. Insurance policies often operate in this way…excluding major items, and then adding back coverage via ‘exceptions’. 

Fire Causing Pollution

A simple example – hostile fire at the insured’s premises or where the insured is working.

That means if there’s a fire at your premises, and the emissions cause injury to someone or something, you have coverage.

Pollution Coverage for Contractors

Other pollution coverage provided by the GL policy is contractor’s liability for pollution emitted during his work. If a contractor is working at a job, and he lays carpet that has heavy fumes or sprays chemicals that cause injury to something or someone, the GL will respond to the pollution liability.

Watch out for the ‘Total Pollution Exclusion’

I did want to mention a quick warning – We have noticed some companies sneak in a ‘total pollution exclusion’ on the GL policy. That eliminates any and all pollution coverage.

Check Your Policy

Next time you get a chance to look at your GL policy, take a look at the list of forms and see if there is a total pollution exclusion…you could save yourself from being completed uncovered in the event of a major claim.