What is the limit for pollutant cleanup and removal under BOP, when caused by a covered peril?

What is the limit for pollutant cleanup and removal under BOP, when caused by a covered peril?

• A. $10,000
• B. $5,000
• C. $20,000
• D. $100,000

Answer: (A)

Pollutant cleanup and removal in a Business Owners Policy is an extra protection that pays the costs to remove pollutants from land or water at or from the insured location when pollutants are released due to a covered peril. The amount the policy will pay for these cleanup costs is capped at a set limit per policy period. For BOPs, that limit is $10,000 per policy period, regardless of the number of incidents during that period, and it is separate from property damage or liability limits. This means if a covered event, like a fire or other covered peril, causes a pollutant release, the insured can recover cleanup costs up to $10,000 for that policy period. Fines, penalties, or costs beyond that limit aren’t covered unless another provision or endorsement applies.

Pollutant cleanup and removal in a Business Owners Policy is an extra protection that pays the costs to remove pollutants from land or water at or from the insured location when pollutants are released due to a covered peril. The amount the policy will pay for these cleanup costs is capped at a set limit per policy period. For BOPs, that limit is $10,000 per policy period, regardless of the number of incidents during that period, and it is separate from property damage or liability limits. This means if a covered event, like a fire or other covered peril, causes a pollutant release, the insured can recover cleanup costs up to $10,000 for that policy period. Fines, penalties, or costs beyond that limit aren’t covered unless another provision or endorsement applies.