What does "environmental liability insurance" cover?

Environmental liability insurance specifically covers damages and legal costs arising from pollution or environmental incidents that are associated with business operations. This type of insurance is critical for businesses that handle hazardous materials or have the potential to impact the environment through their operations. Coverage often includes costs related to remediation efforts, bodily injury claims stemming from exposure to pollutants, and third-party claims related to environmental damage.

In the context of this question, the other options deal with different aspects of insurance. Property damage from natural disasters is typically covered under property insurance, not environmental liability. Losses from theft of business equipment would fall under crime or equipment insurance. Insurance for employee injuries on site is addressed through workers' compensation coverage. Each of these other categories serves a distinct purpose and does not overlap with the primary focus of environmental liability insurance on pollution and environmental risks.