Dec Page February

Question of the Month

There has been a vast array of judicial decisions that have interpreted the absolute pollution exclusion as it exists in liability policies. However, there is also a glaring lack of unanimity as to how the exclusion should be interpreted, with some courts arguing that the exclusion should apply only to environmental pollution, and others maintaining that the exclusion applies to all types of pollution claims.

Insureds who are subject to pollution claims, whether as contractors or manufacturers or even retail store owners, have to wonder what the exclusion means and how courts are interpreting it for insurance coverage purposes. Moreover, does CERCLA (the Comprehensive Environmental Response, Compensation, and Liability Act) have any effect on how the pollution exclusion is viewed?

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