Is pollution covered under a standard CGL policy?

Pollution coverage under a standard Commercial General Liability (CGL) policy is generally subject to specific limitations. While some instances of pollution may be covered, particularly if they are incidental to a covered event, the standard CGL policy typically includes exclusions for pollution-related claims. This means that while certain environmental incidents may be addressed under the policy, coverage is not automatic and may not be comprehensive.

The CGL policy primarily aims to protect businesses from liability arising from bodily injury and property damage caused by their operations. Pollution-related claims often involve significant legal and financial implications, which has led insurance providers to impose restrictions in an effort to manage risk. Therefore, specific endorsements or additional policies might be necessary to provide complete coverage for pollution-related liabilities, reinforcing that this aspect indeed contains limitations outlined in the policy documents.

This understanding is crucial for businesses looking to secure adequate liability coverage and to ensure compliance with environmental regulations, thereby protecting themselves against potential lawsuits and claims related to pollution.