Court Holds Insurance Pollution Clause Excludes Coverage for Manure Contamination

Judge Thomas Rice of the United States District Court for the Eastern District of Washingon issued a ruling earlier this month that is important for agricultural producers to be aware of when purchasing liability insurance policies.  Specifically, Judge Rice held that when a Washington dairy was sued for contaminating drinking water with manure, its insurance company was justified in denying coverage based upon absolute pollution exclusion clauses in the dairy’s policies.