Which of the following is an exclusion or restriction under Commercial General Liability coverage?

Which of the following is an exclusion or restriction under Commercial General Liability coverage?

• A. Pollution
• B. Contractual liability excludes coverage for liability assumed by contractor in a contract
• C. Property damage
• D. Professional liability

Answer: (A)

Pollution is excluded under standard Commercial General Liability coverage because environmental risk is treated as a separate category of exposure. The policy typically does not cover damages—such as bodily injury, property damage, or cleanup costs—caused by the release, discharge, or escape of pollutants. This keeps environmental risks outside the scope of ordinary CGL protection and is why special environmental liability coverage or endorsements are often needed if those risks must be insured. In other words, while CGL commonly covers many types of accidents and damages tied to the insured’s operations or products, pollution events fall outside that protection by design. The other options reflect areas that either are not universally excluded (property damage is a core covered peril when it results from an covered occurrence) or pertain to different lines of protection (professional liability is typically handled by professional liability/E&O policies, and contractual liability exclusions are specific to liability assumed by contract, which can sometimes be addressed with endorsements).

Pollution is excluded under standard Commercial General Liability coverage because environmental risk is treated as a separate category of exposure. The policy typically does not cover damages—such as bodily injury, property damage, or cleanup costs—caused by the release, discharge, or escape of pollutants. This keeps environmental risks outside the scope of ordinary CGL protection and is why special environmental liability coverage or endorsements are often needed if those risks must be insured.

In other words, while CGL commonly covers many types of accidents and damages tied to the insured’s operations or products, pollution events fall outside that protection by design. The other options reflect areas that either are not universally excluded (property damage is a core covered peril when it results from an covered occurrence) or pertain to different lines of protection (professional liability is typically handled by professional liability/E&O policies, and contractual liability exclusions are specific to liability assumed by contract, which can sometimes be addressed with endorsements).