What does pollution liability insurance cover?

Pollution liability insurance specifically addresses claims related to pollution incidents. This type of insurance is designed to cover the costs associated with bodily injury, property damage, and clean-up costs that arise from the release of pollutants. Such pollutants can include hazardous substances, chemicals, or other contaminants that can cause environmental damage.

This coverage is vital for businesses that may inadvertently cause environmental harm, whether through manufacturing, disposal of waste, or other business operations involving chemicals. The insurance helps mitigate financial risks associated with potential lawsuits and regulatory fines that could arise from pollution-related issues.

The other choices do not accurately represent the purpose of pollution liability insurance. Claims arising from injury on the insured's property usually fall under general liability insurance rather than pollution-specific coverage. Similarly, natural disaster damages would be covered by a different type of insurance, such as property insurance or specific catastrophe coverage. Liability for property theft pertains to theft-related policies, which are not connected to pollution or environmental risks.