They must be specifically negotiated, and an additional premium will probably be charged for their inclusion in a policy. The duration of the release of the pollutant must be less than 48 hours, and the event must be reported to the insurer within 14 days. The second endorsement is similar but is not limited to a specified peril. The third new endorsement excepts scheduled substances from the pollution exclusion. None of the endorsements apply to waste handling or remediation activities, or to personal injury coverage.
Companies are in a good position to negotiate the scope of coverage.
These new endorsements allow the purchase of limited pollution coverage for small pollution risks. The pollution exclusion was intended to be absolute. If a company has not purchased one of the available endorsements, it has no coverage for injury caused by the release of a pollutant except for fumes emitted by a faulty heater. Even with the endorsements, there may be numerous gaps in coverage, particularly with the specified perils and scheduled pollutant coverage. These endorsements have been filed in all Insurance Services Office jurisdictions except California, Texas, and Virginia.