Grease Is Not A Pollutant

February 24, 2014

 

A grease trap in tenant's insured restaurant rotted out, causing damage to unrented space owned by the landlord. Does grease meet the definition of “pollutant,” and would the pollution exclusion apply?

 

Massachusetts Subscriber

No, grease does not fit the definition of “pollutant,” and the pollution exclusion does not apply to preclude coverage here. “Pollutant” is a defined term in the policy. “Pollutants” mean any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste.”

 

A majority of courts now hold that the term “pollutant,” as contemplated by the policy, encompasses something that causes environmental damage. That is not the case in this instance. So, it is our view that calling grease a pollutant is a stretch and due to a reasonable argument being made against applying the exclusion, the benefit of the doubt goes to the insured.

 

The insured accidentally damaged someone else's property and that is what the general liability policy is meant to cover.