Pollution Liability Coverage under Truckers Policy

Our insured has a truckers policy with endorsement CA 99 48 attached; this endorsement provides broadened coverage for pollution liability. The insured carries hazardous material and has contracts in which he releases the other party from any liability that arises from spillage and clean up costs. However, CA 99 48 indicates that coverage does not apply to liability assumed under any contract or agreement. So, our insured is confused as to whether he has any coverage for a pollution spill. Can you clarify this issue?

New Mexico Subscriber

The wording on CA 99 48, which states that paragraph a. of the pollution exclusion on the truckers policy applies only to liability assumed under a contract or agreement, means this: if the insured assumes the liability of a pollution spill that causes bodily injury or property damage, the truckers policy will not apply to the claim. So, if your insured has assumed the liability of another with his contracts, CA 99 48 is not providing any liability coverage for him should a pollution claim arise due to a spill while the pollutant is being transported by the insured.

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