What must a business obtain to cover pollution losses when relying on Pollution Exclusion?

• A. Environmental liability policy or endorsement
• B. Increase policy limits
• C. Waiver of Subrogation
• D. Certificate of Insurance

Answer: (A)

When a pollution exclusion is in a policy, covering pollution losses requires buying dedicated environmental coverage. An environmental liability policy or an environmental liability endorsement adds explicit protection for pollution incidents, including cleanup costs and related bodily injury or property damage. This type of coverage is designed to respond to environmental risks that a standard policy with a pollution exclusion would not cover.

Increasing policy limits does not remove the exclusion; the pollution losses would still be excluded unless the environmental coverage is added. A waiver of subrogation is about preventing the insurer from pursuing recourse against a third party, not about providing pollution protection. A certificate of insurance is merely proof that coverage exists, not the coverage itself.