Asbestos Contractor/Supervisor Practice Exam

Which type of insurance policy might increase the cost of an abatement project while limiting long-term liability?

1. Comprehensive general liability insurance

2. Pollution liability insurance

3. Workers' compensation insurance

4. Property insurance

The correct answer is: Pollution liability insurance

Pollution liability insurance is specifically designed to cover losses arising from the discharge of pollutants, which is particularly relevant in asbestos abatement projects. This type of insurance mitigates long-term liability by providing coverage for claims related to environmental damage or health issues stemming from exposure to hazardous materials. Consequently, companies where asbestos abatement occurs may find themselves with increased project costs due to the need for this specialized insurance coverage. The cost increase often results from the specifics of the policy, such as higher premiums required to adequately protect against the significant risks associated with asbestos. However, this added expense can be viewed as an investment in limited long-term liability, as it reduces the likelihood of facing costly legal claims or remediation efforts in the future. Other insurance types, like comprehensive general liability insurance and property insurance, do not focus on the distinct risks associated with pollution and may not offer the same level of protection against specific environmental liabilities. Workers' compensation insurance is primarily concerned with employee injuries or illnesses, rather than the pollution-related aspects of asbestos work.