Which of the following would a business law professor most likely indicate as being a reason for environmental impairment liability insurance being expensive and difficult to obtain?

Question

Quizplus · Accepted Answer

The extensive nature of environmental liability, which can include cleanup costs, economic damages, and natural resource damages, can make environmental impairment liability insurance expensive and difficult to obtain as insurers are wary of the large potential costs they may incur from covering such liabilities. Additionally, the lack of a cap on punitive damages for environmental liability can also contribute to the high cost and difficulty of obtaining such insurance, but this is a secondary factor compared to the extensive nature of environmental liability. Choice A is not entirely accurate as some jurisdictions do have a cap on punitive damages for environmental liability. Choice B is not true as most environmental harm is accidental or unintentional. Choice D may be a contributing factor, but it is not the primary reason for the high cost and difficulty of obtaining environmental impairment liability insurance.

Which of the Following Would a Business Law Professor Most