Recent Ruling on the 'Pollution Exclusion': 'Do What You Say' Rules the Diversified Industries Court

Policyholder Advisor & Alert

PUBLISHED ON: April 1, 1996

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Until recently, policyholders
seeking to
obtain insurance coverage
for environmental liabilities
in states such as
Pennsylvania, where antipolicyholder
rulings on the
so-called “pollution exclusion”
existed, believed they had little reason for
optimism in receiving a friendly ear from the
courts. See Lower Paxon Township v. United States
Fidelity & Guar. Co., Pa. Super., 1989. Those antipolicyholder
rulings appeared to preclude policyholders
from recovering for environmental liabilities
from their insurance companies unless a
short-term “boom” event caused the environmental