How will a limited pollution liability extension on a CGL policy respond to a leak from an underground storage tank?

A limited pollution liability extension on a Commercial General Liability (CGL) policy is designed to provide coverage for certain pollution-related incidents, but it often has exclusions that are important to understand. In the case of leaks from underground storage tanks (USTs), this type of policy typically does not provide coverage.

This exclusion is in place because leaks from USTs typically involve more significant environmental hazards and regulatory requirements compared to other potential pollution incidents. Policies may explicitly state that they do not cover any claims arising from the ownership, maintenance, or use of underground storage tanks, reflecting the increased risk and potential liability associated with these situations.

In contrast, coverage may be available for other types of pollution incidents if they fall within the specific parameters outlined in the policy. However, the emphasis on USTs indicates a recognition of the unique challenges these types of leaks present, making it clear that the policy typically would not respond favorably for claims arising from them.