Georgia Property & Casualty Practice Exam

Which policy would a business want to enhance its commercial general liability policy with pollution coverage?

1. Pollution liability coverage form.

2. Pollution liability limited coverage form.

3. Limited fungi or bacteria coverage.

4. Mold extension coverage.

The correct answer is: Pollution liability coverage form.

A business would want to enhance its commercial general liability policy with pollution liability coverage because this type of coverage specifically addresses the risks associated with pollution-related incidents. These incidents could include bodily injury, property damage, or environmental damage caused by pollutants, which are typically not included in standard general liability policies. Pollution liability coverage provides broader protection against claims arising from the release of pollutants, ensuring that the business is covered in situations where it may inadvertently cause harm to the environment or public health. This is particularly important for businesses that handle hazardous materials, operate near sensitive environments, or have processes that could generate pollutants. The other options—pollution liability limited coverage, limited fungi or bacteria coverage, and mold extension coverage—do not offer the same comprehensive protection. Pollution liability limited coverage typically has restrictions that may not adequately cover all potential pollution events. Limited fungi or bacteria coverage and mold extension coverage specifically pertain to issues related to mold and bacteria, which may not encompass the variety of pollution risks a business could face. Therefore, choosing the pollution liability coverage form effectively enhances the commercial general liability policy to protect against a broader range of risks associated with pollution.