What is a key purpose of pollution liability insurance?

Pollution liability insurance is specifically designed to address the financial risks associated with environmental pollution. Its primary purpose is to protect businesses from the substantial costs associated with environmental clean-up efforts that arise from pollution incidents. This coverage typically includes expenses related to the clean-up of contaminated sites, remediation costs, and legal fees resulting from pollution-related lawsuits or regulatory actions.

While the other options may pertain to different aspects of liability or property insurance, they do not encapsulate the core function of pollution liability insurance. For example, coverage for losses incurred from business closures is more closely aligned with business interruption insurance, and personal injury coverage generally falls under general liability insurance or workers' compensation. Similarly, standard property claims would relate to property damage or loss, which does not directly involve the environmental aspect that pollution liability is designed to address. Thus, the primary focus on environmental clean-up costs solidifies option B as the key purpose of pollution liability insurance.