Pollution Exclusion Law and Legal Definition

Pollution exclusion is a provision included in some commercial general liability policies which excludes coverage for bodily injury or property damages arising from the discharge, dispersal, release, or escape of chemicals, waste, acid, and other pollutants. The policies issued before 1985, contains an exception under which the damages are covered only if the discharge or other release was sudden and accidental. But some courts ruled that "sudden and accidental" could encompass several years of pollution problems. Therefore the policies issued after 1985 does not contain this exception. At present the provision excludes coverage for nearly all types of pollution damage, leaving only limited liability coverage for pollution originating away from an insured's premises.