1. Forms
2. CA
3. CA-31-10

Pollution Liability - Broadened Coverage For Covered Autos (CA 31 10)

The CA 31 10, Pollution Liability - Broadened Coverage For Covered Autos, is an endorsement designed to expand pollution liability coverage for businesses that utilize covered vehicles in their operations. It attaches to the standard Business Auto Coverage Form (CA 00 01) or the Motor Carrier Coverage Form (CA 00 10). The fundamental purpose of this endorsement is to modify the restrictive pollution exclusion found in the base auto policies, thereby providing crucial coverage for pollution incidents arising from pollutants being transported, loaded, or unloaded as cargo by the insured. Standard auto policies offer very limited coverage for pollution, typically only for the escape of fluids necessary for the vehicle's operation (like fuel or coolant). This endorsement "buys back" broader coverage for liability and cleanup costs associated with the release of pollutants that constitute the insured's cargo. Specifically, it often amends the pollution exclusion so that it primarily applies only to liability assumed under a contract or agreement, and it may also render the "care, custody, or control" exclusion inapplicable to the pollution coverage granted by the endorsement.

Classes of Business It Applies To

This endorsement is critical for a variety of businesses whose operations involve the transportation of materials that could be classified as pollutants. Examples include:

• Haulers of hazardous and non-hazardous materials: This includes companies transporting chemicals, petroleum products, industrial waste, or medical waste.
• Fuel distributors and oil dealers: Businesses delivering gasoline, diesel, heating oil, or propane.
• Agricultural businesses: Farms or suppliers transporting significant quantities of fertilizers, pesticides, herbicides, or animal waste.
• Construction and Paving Contractors: Companies hauling materials like asphalt, sealants, paints, solvents, or other chemicals to and from job sites.
• Waste Management Services: Businesses involved in the collection and transportation of refuse, recyclables, or other waste materials that could cause pollution if spilled.
• Manufacturers or Distributors: Any entity that transports raw materials or finished goods that have pollution potential if released from a covered auto during transit, loading, or unloading.

Special Considerations

Several important factors should be considered when evaluating the need for or application of the CA 31 10 endorsement:

• Scope of Broadened Coverage: While the endorsement significantly broadens pollution coverage for cargo, it's not all-encompassing. A key limitation is that the expanded coverage typically does not apply to pollution liability that the insured has assumed under a contract or agreement. For instance, if an insured signs a hold-harmless agreement taking responsibility for all pollution incidents for a third party, this endorsement might not cover that contractually assumed liability.
• Loading and Unloading: The CA 31 10 generally extends coverage to pollution incidents that occur during the loading or unloading of pollutants onto or from a covered auto. However, the exact point at which coverage begins and ends (e.g., pollutants staged near the vehicle but not yet being loaded, or after final delivery) should be carefully reviewed. For very high-risk exposures, a separate Transportation Pollution Liability (TPL) policy might offer even broader terms.
• Interaction with MCS-90: For interstate motor carriers subject to federal financial responsibility requirements, the MCS-90 endorsement guarantees payment for judgments, including those for pollution. However, the MCS-90 allows the insurer to seek reimbursement from the insured for any payments made that would not have been covered under the policy itself. The CA 31 10 provides actual insurance coverage (subject to its terms), which can reduce the insured's out-of-pocket exposure for covered pollution claims that might otherwise fall under an MCS-90 reimbursement provision.
• Geographic Limitations: While the form is listed as applicable in "All States," ensure the policy territory aligns with the insured's operational footprint, especially for cross-border operations.
• Not a Substitute for Other Pollution Coverages: This endorsement is specific to pollution arising from covered autos. It does not cover pollution from the insured's premises or fixed sites (requiring Site Pollution Liability) or non-auto related contracting operations (which may need Contractors Pollution Liability).

Key Information for Agents and Underwriters

Agents and underwriters should focus on the following when dealing with the CA 31 10:

• Thorough Risk Assessment: Understanding the specific types, quantities, and hazard levels of pollutants being transported is paramount. Review the insured's routes (proximity to sensitive environments like waterways or residential areas), safety protocols, driver training programs, spill prevention and response plans, and prior loss history.