Pollution Liability and Product Damage

November 15, 2010

The insured sold a container with bleach to customer. While the customer was transporting the bleach in his vehicle, the cap to the container came loose causing the chemical to seep onto the back seat and floor of the vehicle. These parts have been bleached. The insured's CGL form has an exclusion for pollution. Does this scenario fit into the pollution exclusion?

Kansas Subscriber

No, the pollution exclusion is not applicable in this instance. The pollution exclusion does not address a product claim such as this where the insured's product caused property damage to another's property. This is an instance where the insured's product caused damaged to another's property and that is what the CGL form is meant to cover.