Colorado Subscriber

A

CG 24 15 replaces the pollution exclusion (f) found on the commercial general liability (CGL) coverage forms and provides limited protection, subject to a stated aggregate limit, for some on premises exposures that could face a landowner. Under the standard CGL forms, bodily injury or property damage arising out of the dispersal or discharge of pollutants at or from any premises owned by any insured is excluded. CG 24 15 deletes this part of the pollution exclusion, thereby giving coverage to a landowner like your client. For example, if the tenant poured cleaning solvent out in back of the store and the solvent seeped into the ground and eventually damaged a neighbor's property, CG 24 15 would provide liability and defense costs coverage to the landowner.

Another part of the standard pollution exclusion that is amended by this endorsement is part f (1) (d). That part of the exclusion precludes coverage for injury or damage arising from any premises on which the insured or a contractor is performing operations if the pollutants are brought onto the premises in connection with such operations or if the operations are to test for or clean up pollutants. Endorsement CG 24 15 deletes the first part of that exclusion, so if, for example, the landowner has a lawn care company spray the property with herbicides or insecticides, a subsequent injury or environmental damage claim by a neighbor against the landowner will be covered under the CGL form.

As for the underground storage tank, the endorsement clearly states that damages and injuries based on the escape of pollutants from an underground storage tank on premises owned by any insured are not covered. Therefore, if your client allows the storage tank to be put into his land, he will face any subsequent pollution claim without the benefit of insurance.

Incidentally, CG 24 15 does not allow coverage for any clean up costs requested or ordered by the government. That part of the pollution exclusion is not modified by CG 24 15.