Purchasing a commercial general liability (CGL) insurance policy, which covers companies in case they face a lawsuit, has been the cost of doing business in Texas for decades.

But what if the “suit” a company faces is really an administrative order from the U.S. Environmental Protection Agency, demanding that the business pay nearly $400,000 to help clean up pollution it allegedly released into a river? Would a CGL policy cover that action—an action that is allowed under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)?

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