Pollution Legal Liability

Coverage Description:

Coverage applies on a claims made basis for losses discovered by the Insured within 15 calendar days of the condition and reported to the Insurer within 30 calendar days for the following:

  1. Pollution condition on, at, under, or migrating from a covered location;
  2. Indoor environmental condition at a covered location; or
  3. Claims arising out of a pollution condition resulting from transportation.

Limits of Liability for each Insured Utility:

$1,000,000 Each Pollution Condition or Indoor Environmental Condition
$3,000,000 Aggregate

Self-Insured Retention:

7 Days - Waiting Period for Business Interruption resulting from a Pollution Condition or Indoor Environmental Condition

Coverage Extensions:

  •  Bodily Injury & Property Damage arising out of asbestos or lead-based paint
  •  First Party claims arising out of asbestos or lead-based paint discovered in soil or groundwater

Major Exclusions:

    • Asbestos Clean-up/Abatement
    • Contractual Liability
    • Divested Property
    • Insured’s Internal Expenses
    • Material Change in Risk
    • Known Conditions
    • Internal Non-Compliance
  • Landfill and Sewer Backup
  • Lead-Based Paint Clean-up/Remediation
  • Non-Owned Disposal Sites
  • Vehicles (does not apply to transportation)
  • War
  • Underground Storage Tanks (insured separately)


  •  Business interruption loss means business income, extra expense, and delay expense.
  •  Covered location means any locations owned, operated, leased or maintained by the insured, any location endorsed onto the policy as a covered location, and any sewer lines owned, operated or maintained by the insured utilities.
  •  Indoor environmental condition means:
    1. The presence of fungi in a building or structure, or the ambient air within such building or structure; or
    2. he discharge, dispersal, release, escape, migration or seepage of legionella pneumophila in a building or structure, or the ambient air within such building or structure, provided that such fungi or legionella pneumophila are not naturally occurring in the environment in the amounts and concentrations found within such building or structure.
  •  Legal defense expense means reasonable legal costs, charges, and expenses, including expert charges, incurred by the insured in the investigation, adjustment, or defense of claims or suits.
  •  Loss means:
    1. A monetary judgment, award or settlement of compensatory damages arising from bodily injury, property damage, or remediation costs, including associated punitive, exemplary or multiplied damages, and civil fines, penalties and assessments, but solely to the extent that the punitive, exemplary or multiplied damages, and civil fines, penalties and assessments are insurable under applicable law and arise out of a pollution condition or indoor environmental condition that results in bodily injury, property damage or first-party remediation costs to which this insurance otherwise applies;
    2. Legal defense expense;
    3. First-party remediation costs;
    4. Emergency response costs;
    5. Business interruption loss;
    6. Catastrophe management costs; and
    7. Any other liability or first-party exposure insured pursuant to any supplemental coverage added by endorsement to the policy.
  •  Pollution Condition means illicit abandonment, or the discharge, dispersal, release, escape, migration, or seepage of any solid, liquid, gaseous, or thermal irritant, contaminant, or pollutant, including soil, silt, sedimentation, smoke, soot, vapors fumes, acids alkalis, chemicals, electromagnetic fields (EMFs), hazardous substances, hazardous materials, waste materials, low-level radioactive waste, mixed waste, and medical, red bag, infectious or pathological wastes, on, in, into, or upon land or structures thereupon, the atmosphere, surface water, or groundwater.
  •  Remediation costs means expenses incurred to investigate, quantify, monitor, remove, dispose, treat, neutralize, or immobilize pollution conditions or indoor environmental conditions to the extent required by environmental law in the jurisdiction of such pollution conditions or indoor environmental conditions.
  •  Transportation means the movement of an insured’s waste, materials, goods or products to or from a covered location, including any associated loading or unloading thereof, by an insured, or any third-party vendor engaged by an insured in the business of transporting property for hire, provided that any such movement, and associated loading and unloading activities, are performed beyond the boundaries of a covered location.

Toll Free 24 Hour Emergency Response Hotline:

In the event of an emergency, please contact ACE’s Emergency Response Team at: (888) 310-9553


Illinois Union Insurance Company (Chubb)
(Best's Rating: A++ XV)

Coverage placed by AJG.