Absolute pollution exclusions are intended to exclude coverage
for virtually all pollution-related claims under commercial general
liability insurance policies. However, jurisdictions across the
country have varied in their treatment of these exclusions, with
some jurisdictions applying the exclusion only to instances of
"traditional" environmental pollution while others apply
a broader, literal interpretation of the exclusion. Below are a few
of the most recent examples of claims in which courts have examined
this issue, followed by a link to our 50-state survey on the
topic.
Sewage leakage #1: On May 31, 2017, the Second
Circuit Court of Appeals ruled that an insurer does not
have to defend or indemnify a plumbing company for its
purportedly negligent work during sewer repairs that led to toxic
chemicals being released onto neighboring residential properties.
In The Cincinnati Insurance Co. v. Roy's Plumbing
Inc., the Second Circuit, applying New York law, found
