November 2014

 Protection for Pollution Liability

 Summary: Exclusion f in the commercial general liability coverage (CGL) forms is an almost absolute pollution exclusion; pollution liability that can be inferred to be covered is that resulting from certain off premises exposures or that within the products/completed operations hazard. Exclusion f is examined in detail in another article; see CGL Coverage Form—Coverage A.

Because of the broad sweep of the pollution exclusion in the CGL forms, many insureds, even those whose chances of becoming liable for a pollution incident are remote, need some provision to buy back protection. Under the current commercial general liability program, the Insurance Services Office (ISO) has issued pollution liability forms. The following pages discuss those forms.

Topics covered:

Coverage Forms

 There are two forms available to provide coverage for pollution liability, CG 00 39 04 13 (pollution liability coverage form—designated sites) and CG 00 40 04 13 (pollution liability limited coverage form—designated sites). The main difference between the two forms is that CG 00 40 is a limited coverage form, the limitation being that there is no insuring agreement for reimbursement of mandated off-site clean-up costs, costs that the insured has to pay, under statutory authority, to clean up environmental damage. Also, the exclusions in the two forms have some differences that will be noted.

 CG 00 39 Insuring Agreements

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis