Pollution Exclusion and Clean Up Charges

July 2, 2014

Our insured was hired by a restaurant to clean the hoods, grates, etc. Grease from prepared food is a component of the overall clean up. The oven racks are quite large so the insured removes them and cleans them outside in the parking lot. After completing the job and leaving the scene, someone called 911 and reported a grease spill in the parking lot. The fire department responded, utilizing hazmat clean up services. The insured has submitted the fire department's invoice for the clean up. Coverage is provided under the CG 00 01 12 07 policy. Would the pollution exclusion apply in this instance, thus preventing coverage?

New York Subscriber

Yes, the pollution exclusion applies. This is an expense arising out of a clean up of a pollutant and the CGL form does not cover that expense unless the insured is liable for damages because of property damage that the insured would have in the absence of any request, demand, or statutory or regulatory requirement, or such claim by a governmental authority.