Mobile Equipment Exception

Your business insurance policy known as a Commercial General Liability (CGL) will exclude pollution-type claims. There is some exceptions and one is the Mobile Equipment Exception.

This refers to claims created by bodily injury or property damage arising out of the escape of fuels, lubricants or other operating fluids which are needed to perform the normal electrical, hydraulic or mechanical functions necessary for the operation of mobile equipment or its parts.

These fuels, lubricants or other operating fluids have to escape from a vehicle part designed to hold, store or receive them.

There will not be claims coverage if the bodily injury or property damage arises out of the intentional discharge, dispersal or release of the fuels, lubricants or other operating fluids, or if such fuels, lubricants or other operating fluids are brought on or to the premises, site or location with the intent that they be discharged, dispersed or released as part of the operations being performed by such insured, contractor or subcontractor.

The fuels, lubricants and other operating fluids which can be released from the insured’s mobile equipment during the normal operation of this equipment, would include diesel fuel, motor oil or hydraulic oil.

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