It appears that the trend across the country is to include the costs of cleanup within the term “property damage” in the CGL. The California Supreme Court has resolved this issue for California by stating that cleanup costs are property damage within the meaning of a CGL policy in AIU Insurance Company v. Superior Court, 51 Cal. 3d 807, 274 Cal. Rptr. 820. The Second Circuit and a number of states have found, like California, that
such costs are property damage.
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