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Expert Analysis

Emissions Permits May Not Override Pollution Exclusions

By Bryce Friedman and Matthew Penny ( March 20, 2026, 5:40 PM EDT) -- In a pair of recent decisions, the Illinois Supreme Court and the U.S. Court of Appeals for the Third Circuit each ruled that a pollution exclusion clause in a commercial liability insurance policy precluded coverage for claims alleging harm caused by emissions of ethylene oxide gas, or EtO. In each opinion, the court rejected the policyholder's argument that the exclusion should not apply because its emissions of EtO were purportedly authorized by government permits....

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