We have a question regarding the commercial general liability (CGL) forms and whether there is coverage for one of our clients. The client is covered under the 1988 edition of the CGL form. We are concerned about the absolute pollution exclusion.

The insureds reported to us that their boiler had malfunctioned and during the time it was malfunctioning, soot spewed out of their smoke stack and entered and damaged the neighboring commercial building. The insureds fixed the boiler as soon as they were aware that there was a problem.

The insurer denied coverage under the absolute pollution exclusion, pointing out that "soot" is specifically named as a pollutant to which the "hostile fire" exception does not apply. We question whether damage by "soot" from a hostile fire can really be distinguished from damage by "smoke or fumes," since the policy allows coverage in the latter situation.