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Storage Tanks

There are 553,069 underground storage tanks storing petroleum or hazardous substances, and the number of backlogged cleanups exceeds 67,000

There are currently 553,069 active underground storage tanks nationwide storing petroleum and other hazardous substances. These tanks often leak due to corrosion, faulty installation or inadequate maintenance, oftentimes resulting in their contents contaminating surrounding soil and groundwater.

There are 67,056 releases on backlog waiting to be cleaned up by the Environmental Protection Agency. Relying on state funds to clean up a spill can result in out-of-pocket expenses for storage tank owners while they wait for state reimbursement, which can take years. Your clients need coverage to ensure they have readily available funds to assist them in the cleanup of a spill.

Storage Tank Coverage provides access to coverage for first party clean up and third party property damage or bodily injury as well as defense limits in the event your clients are accused of contamination to a third party.

Coverage Details and Features

  • Meets federal financial responsibility requirements
  • 1st party cleanup and 3rd party BI/PD available
  • Higher limits available for multiple locations
  • Multiple location discount available
  • Deductibles starting as low as $1,000
  • State fund deductible buy-back limits available
  • Business Interruption – First party coverage for loss of income resulting from a covered release.
  • Natural Resource Damages – Designed to return injured natural resources such as groundwater supplies to baseline conditions

Target Classes

(including but not limited to)

  • Convenience stores
  • Colleges & universities
  • Bus garages
  • Hospitals
  • Private nursing facilities
  • Farms
  • Municipalities
  • public utilities
  • Construction companies

Ask an Expert

What does a storage tank pollution policy cover?
Storage tank pollution liability policies cover the costs of cleanup and/or any injury or damage to a third party resulting from an underground or aboveground storage tank leak. We most commonly receive submissions for these policies from petroleum marketers, such as gas stations and convenience stores. Insuring a storage tank is critical because it’s not a matter of if, but when, a tank will leak, and cleanup costs can be very expensive.
Clean-up costs aren’t covered by a professional liability policy?
No -- both general liability and professional liability policies typically exclude losses resulting from pollution. In addition to covering those losses, a storage tank pollution policy ensures that your client meets the EPA’s Financial Responsibility requirement. This requires underground storage tank owners to prove they have the resources needed to clean up a tank leak, mitigate any environmental damage, and compensate third parties for destruction or bodily injury. While aboveground tanks, like generators that fuel hospitals and nursing homes, do not require Financial Responsibility, owners should still access a storage tank pollution liability policy to protect themselves from the costs of a leak.
If my client qualifies for our state’s underground storage tank financial assurance fund, they don’t need insurance coverage, right?
Not necessarily. Currently 35 out of 50 states offer state underground storage tank financial assurance funds, which are designed to serve as a substitute to storage tank liability coverage. State funds work through a wait list, and those delays can be a major inconvenience for clients who want to resume their business operations. Additionally, due to current economic conditions, there is no guarantee that a state’s funds will be available when needed. We encourage agents to recommend an insurance policy to help expedite the cleanup and recovery process, putting your client back in business as soon as possible.

Applications for this product may vary. Please click below to find the office nearest to you for assistance.

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