Md. High Court Says Pollution Exclusion Doesn't Bar Coverage

ANNAPOLIS, Md. - The Maryland Court of Appeals has ruled in an issue of first impression that a total pollution exclusion in a commercial liability policy does not bar coverage of welding fume claims against the insured. Clendenin Brothers Inc., et al. v. United States Fire Insurance Co., No. 1:03-cv-3308 (Md. Ct. App.).

In its Jan. 6 opinion, the Appeals Court said it found the language in a standard total pollution exclusion 'ambiguous' when applied to welding fumes.

The coverage dispute arose when welding rod manufacturer and supplier Clendenin Brothers sought a defense and indemnification from U.S. Fire Insurance Co. …