If a factory owner has a commercial property policy with pollutant clean-up coverage, how much would it pay out to clean up $23,000 worth of industrial waste?

In this situation, the coverage provided by the commercial property policy with pollutant clean-up coverage typically has a specific limit on how much it will pay for clean-up costs. In most standard policies, there is a maximum amount that the insurer will cover for clean-up expenses related to pollutants, often set at $10,000 for each incident.

Given that the clean-up costs amount to $23,000, the policy would pay the maximum limit of $10,000 rather than the total cost incurred by the factory owner for the clean-up. This amount is specifically structured to prevent excessive losses from pollution-related claims and reflects the insurer's underwriting guidelines for such risks.

Therefore, regardless of the actual costs involved in the clean-up, the policy has established a cap, and in this case, it would pay out $10,000, aligning with the typical limits offered in these types of commercial policies.