Pollution Insurance in New Hampshire


What is Pollution Insurance?

When picturing pollution, one may think of a large factory with a billowing smoke stack, but many businesses in New Hampshire use chemicals and therefore subject to legal fines and lawsuits stemming from its handling.  From a large manufacturer to a small hair salon to many businesses in between, pollution is a risk that could bankrupt a company very quickly.

Pollution insurance can help businesses protect themselves from certain covered costs associated with potential environmental contamination incidents.  It is a highly specialized type of commercial liability coverage. As a form of liability coverage, pollution policies may cover legal fees, fines, settlements and judgements associated with covered claims.

What Sorts of Environmental Contamination Does Pollution Liability Insurance Cover?

Pollution liability insurance policies normally protect against a wide range of potential environmental contamination, but the types of incidents that these policies cover do tend to be smaller-scale issues. Their coverages are generally intended for comparatively small instances of groundwater, air or soil contamination.

Businesses that need protection against large-scale environmental contamination often need something like an environmental impact liability insurance policy. These policies are usually more well-suited for major claims.

(The exact contamination incidents that either type of policy covers are determined by that policy’s terms and conditions.)

What Costs Does Pollution Liability Coverage Pay For?

Should a business have a covered pollution liability claim, there are several expenses that a pollution liability policy might help pay for. Depending on a particular policy’s terms and conditions, the policy may cover costs associated with:

  • Legally required cleanups

  • Legal defense fees
  • Incidents that occur during a business’ regular operations

  • Contamination that occurred previously when someone else owned a property

  • Lawsuits filed by impacted parties

What Businesses in New Hampshire is Pollution Liability Insurance Right For?

Many businesses in New Hampshire may be at risk of causing small-scale environmental contamination and therefore, benefit from getting pollution liability insurance. Some examples of businesses that might want a policy include the following:

  • Pool service providers, who use chemicals to treat swimming pools

  • Landscapers, who use pesticides, herbicides and fertilizers to promote beautiful greenery

  • Mechanics, who use motor oil and other automotive fluids

  • Dry cleaners, who use potentially harmful chemicals to clean clothing

  • Builders, who use materials that future researchers may determine are harmful

  • Factories, who use chemicals during the production process

Do Business Owners Policies Offer Pollution Liability Coverage?

Many insurance companies used to include at least some pollution liability coverage in their business owners policies.  A slew of pollution-related liability lawsuits related to asbestos in the 1970s, however, caused many insurers to stop including the protection in their standard business owners policies. Now, businesses that want pollution liability coverage usually need to get the coverage either through a stand-alone policy or a commercial package policy.  Check with an insurance professional for more specific information.

How Much Does Pollution Liability Coverage Cost?

Insurance companies consider many factors when setting pollution liability coverage premiums. Some of the items they might take into account include:

  • The industry that a business is in

  • The exact materials and chemicals that a business uses

  • The chemical disposal methods that a business uses

  • The proximity of a business to nearby communities

  • The coverages and limits chosen for the policy

  • The business' past claims history (if any)

How Can Businesses in New Hampshire Get Pollution Insurance?

For help finding pollution insurance that’ll provide your New Hampshire business with the protection it needs, contact HPM Insurance. Our agents are well-versed in this specialty coverage and can help you determine the best way to purchase the right protection. Since we’re an independent agency and not bound to any one insurance company, our agents are able to recommend the very best option regardless of what insurer offers it.