Question

Stan runs a local corner grocery that also sells gasoline. One day a customer pulls away from the pump while the gas is still pumping, breaks the pump line and causes gasoline to escape all over the parking lot and into the storm drain. Stan files a claim under his commercial property policy. Damage to repair the pump totals $545.00 and $157.00 worth of gasoline was pumped out before anyone noticed the accident and was able to stop the pump. The local HazMat team was called out by the authorities to clean up the parking lot and the storm drain. Stan received a bill from the County for $8,850.00 for the clean up. He sends the bill to you to pay. What kind of coverage under Stan's policy would pay this loss?

(A) Debris Removal coverage

(B) Pollution Clean Up and Removal

(C) Preservation of Property coverage

(D) Builders Risk coverage

Answer 1

The coverage under Stan's policy that would pay this loss is Pollution Clean Up and Removal coverage (B).

Step-by-step explanation:

The coverage under Stan's policy that would pay this loss is Pollution Clean Up and Removal coverage (B). This coverage typically helps pay for the costs associated with cleaning up pollution or contamination caused by covered perils, such as gasoline leaking into the storm drain.

In this case, the gasoline escaping into the parking lot and storm drain would be considered a pollution event, and the policy should cover the expenses incurred for the hazmat team to clean up.