They can rupture, leak, or even explode, which can lead to serious pollution repercussions for the environment. It can also cause bodily injury and property damage. Given the severity of the damage that can occur with a fault storage tank, having the proper insurance coverage to protect your business, your employees, the community, and the environment is vital.
Don’t assume that just because you general liability insurance, it doesn’t mean that you are properly covered. Most general liability insurance policies exclude issues that can arise with storage tanks and pollution. That’s why you need to protect yourself with a separate storage tank liability insurance policy.
They can rupture, leak, or even explode, which can lead to serious pollution repercussions for the environment. It can also cause bodily injury and property damage. Given the severity of the damage that can occur with a fault storage tank, having the proper insurance coverage to protect your business, your employees, the community, and the environment is vital.
A storage tank liability insurance policy offers coverage for cleanup costs as a result of leaks and the pollution that these types of leaks can cause.
This type of policy can also offer coverage for bodily injuries that are sustained by third parties, as well as property damage that results from issues with storage tanks – either above or underground.
The coverage provided by a storage tank liability insurance policy will differ from provider to provider. Generally, however, this type of insurance will cover the costs that are associated with:
There are additional coverage options available; however, it is best to speak with a reputable insurance provider to find out exactly what type of coverage would be in your best interest.
A general commercial liability insurance policy can offer a lot of protection against several different components of a business. However, as mentioned, these types of policies do have certain exclusions, and usually, pollution from storage tanks are something they will not cover.
For that reason, it is important to have a specific insurance policy that protects you in the event that something goes wrong with your storage tanks. The costs of damages that are associated with storage tank malfunctions can be astronomical. Without the proper insurance, you could end up having to pay for those costs out of your own pocket. Do you have access to that kind of money without putting your business at risk?
With a storage tank liability insurance policy, you will have peace of mind knowing that should anything happen with your tanks, you have the protection that you need.
Just like coverage for this type of policy can vary, so can the cost. Multiple factors are weighed when determining premiums; for example, the location of your tanks, their size, how many you own, the elements that they store, their age, and their condition.
The best way to gauge how much a storage tank liability policy will cost is to speak to a trusted insurance company that offers this kind of coverage. Together, you and an insurance broker can discuss the specifics of your particular situation and determine exactly what type of and how much coverage you need.
A general commercial liability insurance policy can offer a lot of protection against several different components of a business. However, as mentioned, these types of policies do have certain exclusions, and usually, storage tanks are something they will not cover.
For that reason, it is important to have a specific insurance policy that protects you in the event that something goes wrong with your storage tanks. The costs of damages that are associated with storage tank malfunctions can be astronomical. Without the proper insurance, you could end up having to pay for those costs out of your own pocket. Do you have access to that kind of money without putting your business at risk?
With a storage tank liability insurance policy, you will have peace of mind knowing that should anything happen with your tanks, you have the protection that you need.
We hope this article on storage tank liability insurance has been informative. If you own any business that utilizes storage tanks or offers to store products for other companies in tanks, you really do need to consider taking out a storage tank liability insurance policy. By having this type of policy, you can ensure that your business is well protected against the perils that can occur as the result of a storage tank malfunction.
You and nearly every commercial property owner or operator with an underground storage tank that contains petroleum products must comply with the federal Environmental Protection Agency (EPA) rules and regulations. They relate to notifying it of their existence, testing them for leaks, and retrofitting and monitoring them to comply with the requirements. The EPA also establishes minimum financial responsibility requirements for you as an owner or operator. The Underground Storage Tank Policy-Designated Tanks provides coverage to meet your financial responsibility requirements for such underground petroleum product storage tanks. It does not apply to tanks that contain any other hazardous substances.
The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) defines an underground storage tank as any tank with 10% or more of its volume below ground. The definition also includes any piping attached to the tank. As a result, this definition applies in cases where the tank itself is physically above ground but has a significant amount of piping, plumbing, pumping, or other equipment below grade level.
Consult the policy for definitions and limitations. The information below does not represent contract terms. The policy is subject to company underwriting practices.
The Underground Storage Tank Policy-Designated Tanks pays amounts you are legally required to pay because of bodily injury or property damage that an underground storage tank incident causes. It also pays amounts you are legally required to pay for corrective action costs that result from a covered underground storage tank incident. An incident is any spilling, leaking, emitting, discharging, escaping, leaching, or disposing of petroleum from an underground storage tank into ground or surface water or subsurface soils.
The policy also provides a specific amount for defense costs of either of the coverages described above. These payments apply even if you assume control of defending a suit.
Every insurance policy or coverage form has certain exclusions and limitations. This is because only specific types of businesses need the coverage or the risk or exposure to loss is not considered insurable for one or more reasons. The exclusions are:
Conditions are obligations you owe the insurance company as well as obligations the insurance company owes you when a loss occurs.
Refer to the policy for a list of defined terms.
This policy provides fairly narrow coverage. For this reason, the number and type of endorsements available to modify or adjust it are limited.
