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LSDefine
Simple English definitions for legal terms
pollution exclusion
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A quick definition of pollution exclusion:
A pollution exclusion is a rule in some insurance policies that says they won't cover damage or injury caused by pollution. Pollution means things like chemicals, waste, and other harmful things that can hurt people or the environment. This rule can be in different types of insurance policies, like ones for businesses or cars. It's important to know if your policy has a pollution exclusion so you can make sure you have the right coverage for your needs.A more thorough explanation:
A pollution exclusion is a provision in some insurance policies that excludes coverage for bodily injury or property damage resulting from the discharge, release, or escape of pollutants.
- A manufacturing company has a commercial general liability policy that includes a pollution exclusion. If the company accidentally spills chemicals into a nearby river, causing harm to wildlife and nearby residents, the policy would not cover the resulting damages.
- An individual purchases a homeowner's insurance policy that includes a pollution exclusion. If the individual's oil tank leaks and contaminates the soil and groundwater on their property, the policy would not cover the cost of cleanup and remediation.
These examples illustrate how a pollution exclusion can limit the coverage provided by an insurance policy. In both cases, the policyholder would be responsible for the costs associated with the pollution event, as the policy does not cover damages resulting from pollutants.