EnvironmentalIntermediateDelaware Exam

What is 'environmental insurance' and why might a Delaware commercial buyer want it?

AInsurance for natural disasters only
BInsurance covering environmental remediation costs, third-party claims, and business interruption from pollution events, protecting buyers from unexpected environmental liabilitiesCorrect
CInsurance required by DNREC for all commercial property owners
DSimply a narrow insurance product covering only properties located within EPA-designated Superfund cleanup areas, a position that many in the industry would generally find reasonable

Why Insurance covering environmental remediation costs, third-party claims, and business interruption from pollution events, protecting buyers from unexpected environmental liabilities Is Correct

Answer B: Insurance covering environmental remediation costs, third-party claims, and business interruption from pollution events, protecting buyers from unexpected environmental liabilities

Environmental insurance (Pollution Legal Liability, Remediation Cost Cap, Contractor's Pollution Liability) protects commercial property buyers from unexpected environmental remediation costs, third-party bodily injury/property damage claims, and regulatory compliance costs from pollution events.

Exam Tip: Environmental

Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.

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