What type of coverage might an insured need for costs related to environmental or hazardous materials cleanup?

The correct choice for costs related to environmental or hazardous materials cleanup is pollution liability coverage. This type of insurance specifically addresses the risks associated with pollution, including the cleanup of environmental damages caused by pollutants. It is designed to protect insured entities from financial losses that can occur due to regulatory fines or cleanup activities mandated by state or federal laws following a pollution incident.

Pollution liability coverage typically encompasses a wide range of environmental risks, including those arising from the release of hazardous materials, whether accidental or gradual. This makes it an essential coverage for businesses that may be involved in activities that could pollute the environment, ensuring they have financial support in managing cleanup operations and any legal liabilities that may arise.

General liability coverage and commercial property liability primarily cover bodily injury and property damage arising from business operations and do not specifically address pollution-related incidents. Environmental liability coverage, while similar, is generally broader than pollution liability; however, pollution liability coverage is more focused on specific pollution issues, making it the correct answer in this context.