A commercial liability policy with a pollution exclusion does not cover a Virginia HOA facing pool-related lawsuits. The incident in question led to health effects for pool users in the community.
Pollution Exclusion and its Impact on Coverage
Philadelphia Indemnity Insurance Co. argues it owes no coverage for Harper’s Mill Homeowners Association lawsuits. The lawsuits involve a chemical discharge at the community pool. The insurer filed a federal motion seeking a ruling that it is not liable.
On June 15, 2022, Harper’s Mill hired SwimMetro Management Inc. to manage the community pool. That day, a SwimMetro-employed lifeguard allegedly failed to check the pool’s chemical pumps. This led to chlorine and muriatic acid discharging into the pool. The chemicals reportedly created a hazardous byproduct when mixed with water.
About 15 pool users allegedly suffered physical and respiratory illnesses from exposure to the water. Symptoms included nausea, coughing, and shortness of breath. Virginia Poison Center confirmed these symptoms align with chlorine exposure. Lawsuits filed in February blame both Harper’s Mill and SwimMetro for negligence.
Insurer Cites Pollution Exclusion
Philadelphia Insurance asserts the policy’s pollution exclusion applies to this incident. The exclusion disallows claims from pollutant-related injuries caused by insureds, contractors, or subcontractors. It defines pollutants as irritants or contaminants like chemicals and fumes.
The insurer claims the dispersed chemicals meet the exclusion’s definition. The chemicals were brought by Harper’s Mill’s contractor and dispersed on its premises. Thus, the policy does not cover the claims, Philadelphia argues.
The case was filed in the U.S. District Court for the Eastern District of Virginia in Richmond.
