Pollution Exclusion Applicability

February 17, 2014

My insured has a CG 00 01 12 01 policy. The insured was hired to install new circuits for a customer. An employee was pulling cable and accidentally set off the fire suppression system in the customer's office. As a result, ansul was released from the suppression system. The damage includes the cost to refill the suppression system (with ansul) and cost to clean-up ansul. Does the pollution exclusion in the CGL form apply?

Pennsylvania Subscriber

The pollution exclusion is not applicable in this instance. The premises is not one owned or occupied by the insured and the insured did not bring the fire suppressant on to the premises for its work. As for the cleanup costs, the pollution exclusion states that the exclusion does not apply to liability for damages because of property damage that the insured would have in the absence of any request or order to clean up. In other words, if the insured has coverage for the property damage it caused, the cleanup part of the pollution exclusion is not applicable.