The Troublesome Trend Of D&O, E&O Pollution Exclusions

Law360, New York (July 9, 2012, 2:14 PM EDT) -- In light of the emerging risks associated with climate change and related environmental liabilities, the proliferation of pollution exclusions in directors and officers (D&O) and errors and omissions (E&O) insurance policies is an alarming trend.

The insurance industry’s long history of efforts to expand the scope of these exclusions adds cause for concern, because virtually any substance can be an irritant or pollutant in sufficient concentrations or under specific circumstances. The highest courts of many states recognize that this can lead to absurd results and have...
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