Court: Pollution liability coverage doesn't extend to transport of polluted oil

07/2/2013 | Lexology.com (free registration)

A federal appeals court has upheld a lower court ruling that an insurer wasn't liable to cover cleanup costs incurred by the holder of a pollution and remediation legal liability policy of delivering oil contaminated with polychlorinated biphenyls, or PCBs, to a customer. The intention of the policy is "to provide coverage for environmental harm resulting from the disposal or containment of hazardous waste," according to the court. "This case -- which merely involves the unwitting introduction and transfer of polluted oil into containers otherwise meant to hold that oil -- does not fall within those parameters."

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