Storage Tank and Site Pollution Liability – The Unsung Hero

The above-ground fuel oil tank located in your insured’s building’s basement was overfilled when the delivery man was distracted while playing games on his smartphone. An inch of oil covered the floor around the tank and damaged the personal property that several tenants were storing in the area.

Coverage for storage tanks is often overlooked.  Many of your insured’s properties could be home to storage tanks, which means you should make sure they have the right insurance coverage in place. Clients who have storage tanks can opt for a tank specific policy or choose a broader Premises Pollution Liability policy. You should take the time to help your insured better understand their responsibilities in owning a location that has a storage tank. These responsibilities include proper maintenance of the tanks, as well as how to handle a situation where a leak has occurred.

A Site Pollution policy is a good option to consider.  There may be other exposures at the insured’s location that can cause a pollution condition that may not be covered by a tank specific policy. For example, risks such as apartment buildings or condos may have a pollution condition resulting from indoor air conditions or contents of other containers. The source of the leak may not always be clear, and a pollution condition could come from a source other than a tank. Your insured could run into a coverage dispute if they have a policy that is limited strictly to a tank.

Pollution and environmental liability occurrences for real estate tend to be large, expensive and complicated. New Empire Group’s Recover program addresses this risk with bodily injury, property damage, and clean-up expenses arising from the release of contaminants.

* Please note Underground tanks more than 25 years old are not eligible for coverage in the Recover Program.