Legal Definitions - pollution exclusion

A pollution exclusion is a provision in some insurance policies that excludes coverage for bodily injury or property damage resulting from the discharge, release, or escape of pollutants.

• A manufacturing company has a commercial general liability policy that includes a pollution exclusion. If the company accidentally spills chemicals into a nearby river, causing harm to wildlife and nearby residents, the policy would not cover the resulting damages.
• An individual purchases a homeowner's insurance policy that includes a pollution exclusion. If the individual's oil tank leaks and contaminates the soil and groundwater on their property, the policy would not cover the cost of cleanup and remediation.

These examples illustrate how a pollution exclusion can limit the coverage provided by an insurance policy. In both cases, the policyholder would be responsible for the costs associated with the pollution event, as the policy does not cover damages resulting from pollutants.