New Science, New Toxins and New Substances at Issue – Back to the Future for the So-Called P
This week’s issue of Business Insurance brings an update article on the "pollution exclusion" – in its various iterations. The article relies in part on this massive Am Re summary of the case law. As more and more substances are identified as "toxins," one can expect more returns to the issues. The insurance industry also seeks to apply the clause to substances such as Chinese drywall.
The pollution exclusion arguments highlight a real problem. Insurers do not want to take any real risk, thus badly impairing the function and role of insurance. Industry refusal to really take on risk contributes to the growing need to manage the risk that insurance does not work.