Most people do not normally link environmental impairment to commercial or habitational real estate. Commercial property owners and contractors tend to believe that pollution conditions such as mold/microbial matter or lead-based paint are covered by general liability policies. They are not.Over the past several years, exclusions for these conditions have appeared on general liability policies, creating coverage gaps for these potential lightning rods and other unknown historic pollution conditions such as dry cleaning solvents, which can affect soil and groundwater. This gap combined with the absolute or total pollution exclusion that has been a part of general liability policies since the late 1980s may now present numerous challenges to the balance sheets of both commercial and habitational property owners.
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