Pollution Exclusion
A standard CGL policy exclusion that eliminates coverage for bodily injury, property damage, or cleanup costs arising from the discharge, dispersal, or release of pollutants.
Overview
The Pollution Exclusion is one of the most significant exclusions in a standard CGL policy. Introduced in the 1980s after insurers faced massive environmental cleanup liabilities, this exclusion removes coverage for almost all pollution-related claims, including cleanup costs, third-party injury from contaminant exposure, and property damage from pollutant releases.
What It Excludes
The exclusion applies broadly to the discharge, dispersal, seepage, migration, release, or escape of pollutants — defined as any solid, liquid, gaseous, or thermal irritant or contaminant. This can include obvious pollutants like chemicals and fuel, but also less obvious ones like dust, fumes, and even carbon monoxide from equipment.
Closing the Gap
Vendors performing work with pollution exposure need a separate Contractors Pollution Liability (CPL) policy. When requiring this coverage on a COI, verify that it is a standalone policy or specific endorsement — not just a reference to the CGL, which explicitly excludes pollution events. Typical CPL limits range from $1M to $5M depending on the scope and risk level of the work.
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