Environmental

What is 'environmental insurance' and how does it benefit Illinois commercial property transactions?

AInsurance required by Illinois EPA for all industrial property owners
BInsurance covering unexpected environmental cleanup costs, third-party liability from contamination, and business interruption from environmental events✓ Correct
CInsurance protecting agents from liability for missing environmental issues in transactions
DA government-backed insurance fund for environmental cleanups in Illinois

Explanation

Environmental insurance (pollution liability insurance) covers property owners, lenders, and developers against unexpected environmental costs not covered by standard insurance. Policies may cover: cleanup costs for newly discovered contamination, third-party claims for bodily injury or property damage from pollution, and cost overruns on known contamination. In Illinois commercial transactions, environmental insurance can bridge liability gaps and facilitate deals on properties with environmental history.

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