The phrase “arising out of” should be interpreted broadly in assessing whether allegations in a complaint fall within the purview of a pollution exclusion.

The plaintiffs alleged bodily injury and property damage resulting from the defendants’ pollution of groundwater and soil with hazardous toxic chemicals. Though the complaint pled multiple counts of negligence, statutory violations, nuisance and trespass, the insurer had no duty to defend or indemnify because the policy’s pollution exclusion encompassed all claims “arising out of” the discharge, dispersal, or escape of pollutants and the phrase “arising out of” should be interpreted broadly.

Case Law Alert - 1st Qtr 2011