OUT OF THE ORDINARY INSURANCE

ENVIRONMENTAL INSURANCE FOR FUEL HAULERS & HAZMAT TRANSPORT

FUEL HAULERS AND HAZMAT TRANSPORT OPERATIONS LIVE IN ONE OF THE HIGHEST-SEVERITY MOBILE ENVIRONMENTAL LIABILITY CLASSES IN THE ENTIRE MARKET. A SINGLE INCIDENT CAN CREATE CLEANUP COSTS, THIRD-PARTY LIABILITY, REGULATORY PRESSURE, AND MAJOR FINANCIAL DAMAGE — FAST.

MARKET RISK CLASSIFICATION
LOWMIDHIGHCRITICAL
HIGHEST-SEVERITY MOBILE CLASS
ALONGSIDE HAZMAT TRANSPORT, FUEL HAULING IS CONSISTENTLY AMONG THE MOST CLAIM-SENSITIVE CATEGORIES IN TRANSPORTATION POLLUTION LIABILITY.
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A COMMERCIAL AUTO POLICY IS NOT THE SAME THING AS A STRONG MOBILE ENVIRONMENTAL LIABILITY POSITION. IF THE LOSS INVOLVES POLLUTION DAMAGE, CLEANUP, OR CONTAMINATION — AND FUEL AND HAZMAT LOSSES ALMOST ALWAYS DO — THE INSURANCE DISCUSSION CAN GET BIGGER VERY QUICKLY. FUEL AND HAZMAT OPERATIONS NEED A SEPARATE ENVIRONMENTAL LIABILITY REVIEW.
THIS PAGE IS FOR

FUEL HAULERS, PETROLEUM TRANSPORT OPERATIONS, HAZMAT TRANSPORTERS, CHEMICAL HAULERS, TANKER TRUCK OPERATIONS, SPECIALTY LIQUID TRANSPORT OPERATIONS, CONTRACTORS MOVING POLLUTION-SENSITIVE MATERIAL, AND OPERATIONS WITH HIGH-SEVERITY MOBILE RELEASE POTENTIAL.

THE MATERIAL CHANGES EVERYTHING

WHEN THE CARGO ITSELF CAN CAUSE LARGE CLEANUP COSTS, WIDESPREAD DAMAGE, OR HIGH PUBLIC RISK, THE CLAIM CAN ESCALATE FASTER THAN ORDINARY TRANSPORT LOSSES. THIS IS NOT GENERIC TRUCKING. THE SEVERITY OF THE MATERIAL BEING MOVED CHANGES THE ENTIRE INSURANCE DISCUSSION.

THIS PAGE VS TRANSPORT HUB

THE TRANSPORTATION POLLUTION LIABILITY HUB PAGE COVERS THE FULL RANGE OF MOBILE POLLUTION EXPOSURE. THIS PAGE IS SPECIFIC TO FUEL AND HAZMAT TRANSPORT — ONE OF THE HIGHEST-SEVERITY SUBCATEGORIES IN THAT DISCUSSION. USE BOTH.

INCIDENT SEVERITY TOOL

HOW SERIOUS COULD YOUR INCIDENT BE?

SELECT THE FACTORS THAT APPLY TO YOUR OPERATION. THE TOOL CALCULATES A RELATIVE INCIDENT SEVERITY SCORE TO SHOW HOW QUICKLY A FUEL OR HAZMAT RELEASE CAN ESCALATE INTO A MAJOR ENVIRONMENTAL LIABILITY EVENT.

SELECT FACTORS THAT APPLY TO YOUR OPERATION
MATERIAL FACTORS
ROUTE & EXPOSURE FACTORS
OPERATIONS FACTORS
INCIDENT SEVERITY SCORE
0
/ 100
SELECT FACTORS ABOVE
SELECT THE FACTORS THAT APPLY TO YOUR FUEL OR HAZMAT TRANSPORT OPERATION TO SEE YOUR RELATIVE INCIDENT SEVERITY SCORE.
WHY AUTO ISN'T THE WHOLE ANSWER

WHAT HAPPENS WHEN A FUEL OR HAZMAT RELEASE IS TREATED AS AN AUTO CLAIM

THIS IS WHERE THE GAP BECOMES VERY REAL. A FUEL OR HAZMAT INCIDENT THAT BEGINS AS AN AUTO EVENT CAN QUICKLY OUTGROW WHAT ANY STANDARD COMMERCIAL AUTO PROGRAM WAS DESIGNED TO HANDLE.

01

THE INCIDENT IS FILED UNDER COMMERCIAL AUTO

THE HAULER REPORTS THE EVENT TO THEIR AUTO CARRIER. VEHICLE DAMAGE IS COVERED. THE DRIVER'S BODILY INJURY CLAIM IS HANDLED. EVERYTHING LOOKS MANAGEABLE — AT FIRST.

02

THE POLLUTION COMPONENT SURFACES

THE RELEASED FUEL OR CHEMICAL REACHES STORM DRAINS, SOIL, OR NEARBY PROPERTY. CLEANUP CONTRACTORS ARE MOBILIZED. THIRD-PARTY PROPERTY OWNERS FILE CLAIMS. REGULATORS OPEN AN INQUIRY. THE SCOPE OF THE LOSS EXPANDS WELL BEYOND THE VEHICLE INCIDENT.

03

THE AUTO POLICY REACHES ITS LIMITS

THE COMMERCIAL AUTO POLICY ADDRESSES WHAT IT WAS DESIGNED TO ADDRESS — VEHICLE AND BASIC LIABILITY. THE CLEANUP COSTS, ENVIRONMENTAL CONTAMINATION CLAIMS, AND REGULATORY RESPONSE COSTS MAY FALL OUTSIDE ITS SCOPE. THE POLLUTION EXCLUSION IN THE AUTO POLICY BECOMES A FACTOR.

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THE GAP IS NOW THE HAULER'S PROBLEM

WITHOUT TRANSPORTATION POLLUTION LIABILITY COVERING THE ENVIRONMENTAL COMPONENT, THE HAULER FACES CLEANUP COSTS, DEFENSE COSTS, AND THIRD-PARTY ENVIRONMENTAL CLAIMS WITHOUT ADEQUATE INSURANCE BEHIND THEM. THE GAP CAN BE LARGE — AND THE DAMAGE TO THE BUSINESS CAN BE LASTING.

COMMON EXPOSURES

ENVIRONMENTAL EXPOSURES FOR FUEL & HAZMAT TRANSPORT

THESE ARE THE SPECIFIC EVENTS AND CONDITIONS THAT CREATE ENVIRONMENTAL LIABILITY FOR FUEL HAULERS AND HAZMAT TRANSPORT OPERATIONS — ACROSS THE FULL ARC OF THE TRANSPORT EVENT.

CRITICAL
TANKER RELEASE AFTER COLLISION
CRITICAL
HAZMAT RELEASE DURING TRANSPORT
CRITICAL
ROADWAY SPILLS WITH PUBLIC AREA IMPACT
HIGH
LEAKS FROM HOSES, CONTAINERS, OR SYSTEMS
HIGH
LOADING AND UNLOADING INCIDENTS
HIGH
RUNOFF INTO DRAINS OR WATERWAYS
HIGH
SOIL OR GROUNDWATER IMPACT
HIGH
FIRE-RELATED OR EMERGENCY-RESPONSE CONSEQUENCES
BASE
THIRD-PARTY PROPERTY DAMAGE
BASE
THIRD-PARTY BODILY INJURY
BASE
EMERGENCY RESPONSE COSTS
BASE
REGULATORY ATTENTION & DEFENSE COSTS
WHY THESE OPERATIONS BUY THIS COVERAGE

THE REAL REASONS FUEL HAULERS & HAZMAT OPERATIONS PURCHASE ENVIRONMENTAL LIABILITY COVERAGE

FUEL AND HAZMAT OPERATIONS THAT HAVE THOUGHT CAREFULLY ABOUT THEIR EXPOSURE UNDERSTAND THAT ENVIRONMENTAL LIABILITY IS NOT A SIDE PURCHASE. IT IS A CORE PART OF HOW THEY MANAGE RISK.

01

HIGH-SEVERITY RELEASE POTENTIAL

A SINGLE FUEL OR HAZMAT RELEASE ON A PUBLIC ROAD CAN CREATE CLEANUP COSTS, REGULATORY PRESSURE, AND MULTI-PARTY LIABILITY FASTER THAN ALMOST ANY OTHER TYPE OF TRANSPORTATION LOSS.

02

CLEANUP COST EXPOSURE

ENVIRONMENTAL CLEANUP AFTER A FUEL OR HAZMAT SPILL CAN BE EXPENSIVE — ESPECIALLY IF MATERIAL ENTERS WATERWAYS, GROUNDWATER, OR SENSITIVE AREAS REQUIRING SPECIALIZED REMEDIATION.

03

THIRD-PARTY LIABILITY

PROPERTY OWNERS, BUSINESSES, AND INDIVIDUALS NEAR THE INCIDENT AREA CAN FILE CLAIMS FOR PROPERTY DAMAGE AND BODILY INJURY — OFTEN ACROSS MULTIPLE JURISDICTIONS AT ONCE.

04

CONTRACT & CLIENT REQUIREMENTS

PETROLEUM DISTRIBUTORS, FUEL TERMINALS, CHEMICAL COMPANIES, AND HAZMAT SHIPPERS INCREASINGLY REQUIRE ENVIRONMENTAL LIABILITY INSURANCE AS A CONDITION OF USING A CARRIER.

05

REGULATORY CONSEQUENCES

FUEL AND HAZMAT RELEASES TRIGGER STATE AND FEDERAL AGENCY RESPONSE — INCLUDING EPA, STATE ENVIRONMENTAL AGENCIES, DOT, AND LOCAL AUTHORITIES — EACH WITH THEIR OWN REQUIREMENTS AND COST IMPLICATIONS.

06

AUTO GAP PROTECTION

THE MOST COMMON REASON FUEL AND HAZMAT HAULERS BUY ENVIRONMENTAL LIABILITY COVERAGE IS TO FILL THE GAP THAT COMMERCIAL AUTO ALONE CANNOT ADEQUATELY COVER ON A POLLUTION LOSS.

FAQS

COMMON QUESTIONS — ENVIRONMENTAL INSURANCE FOR FUEL HAULERS & HAZMAT TRANSPORT

WHY DO FUEL HAULERS NEED ENVIRONMENTAL INSURANCE?
BECAUSE A RELEASE OF FUEL OR OTHER POLLUTION-SENSITIVE MATERIAL CAN CREATE MASSIVE CLEANUP COSTS, PROPERTY DAMAGE, BODILY INJURY, AND REGULATORY ISSUES — ALL AT ONCE. FUEL AND HAZMAT RELEASES ARE AMONG THE HIGHEST-SEVERITY ENVIRONMENTAL INCIDENTS IN THE TRANSPORTATION CATEGORY, AND THE FINANCIAL CONSEQUENCES CAN OUTLAST THE ORIGINAL INCIDENT BY YEARS.
IS THIS DIFFERENT FROM REGULAR TRUCKING INSURANCE?
YES. THE CARGO ITSELF CREATES A MUCH HIGHER ENVIRONMENTAL LIABILITY PROFILE. REGULAR TRUCKING INSURANCE IS BUILT AROUND VEHICLE AND CARGO EXPOSURE. FUEL AND HAZMAT TRANSPORT ADDS A LAYER OF ENVIRONMENTAL LIABILITY THAT STANDARD TRUCKING PROGRAMS WERE NOT DESIGNED TO ADDRESS — ESPECIALLY ONCE A POLLUTION EVENT IS IN PLAY.
DOES COMMERCIAL AUTO HANDLE THIS EXPOSURE?
NOT NECESSARILY IN THE WAY THE INSURED EXPECTS. COMMERCIAL AUTO HANDLES VEHICLE AND BASIC LIABILITY. POLLUTION LIABILITY — THE CLEANUP COSTS, CONTAMINATION CLAIMS, AND ENVIRONMENTAL REGULATORY RESPONSE — NEEDS TO BE REVIEWED SEPARATELY. MANY COMMERCIAL AUTO POLICIES CONTAIN POLLUTION EXCLUSIONS THAT APPLY DIRECTLY TO FUEL AND HAZMAT RELEASE EVENTS.
WHAT MAKES HAZMAT TRANSPORT HIGHER SEVERITY?
THE MATERIALS, THE PUBLIC EXPOSURE, THE CLEANUP POTENTIAL, AND THE REGULATORY CONSEQUENCES. HAZMAT MATERIALS OFTEN REQUIRE SPECIALIZED CLEANUP PROCEDURES, GENERATE MULTI-AGENCY REGULATORY RESPONSE, AND CREATE BODILY INJURY EXPOSURE FOR NEARBY RESIDENTS AND EMERGENCY RESPONDERS — EACH OF WHICH CAN GENERATE SIGNIFICANT INDEPENDENT CLAIMS.
WHEN SHOULD A FUEL OR HAZMAT OPERATION REVIEW THIS COVERAGE?
BEFORE A LOSS, BEFORE A CLIENT OR CONTRACT DEMANDS IT, AND BEFORE ASSUMING THE CURRENT AUTO PROGRAM IS GOOD ENOUGH. FUEL AND HAZMAT OPERATIONS THAT HAVE EXPERIENCED A MAJOR INCIDENT WITHOUT ADEQUATE ENVIRONMENTAL LIABILITY COVERAGE KNOW EXACTLY WHY THIS REVIEW SHOULD HAPPEN FIRST — NOT AFTER THE EVENT.
CONTACT KELLY INSURANCE GROUP

REQUEST HELP WITH FUEL HAULER & HAZMAT TRANSPORT ENVIRONMENTAL INSURANCE

USE THE FORM BELOW IF YOU WANT TO DISCUSS ENVIRONMENTAL LIABILITY FOR FUEL OR HAZMAT TRANSPORT, A SPECIFIC MATERIAL OR ROUTE EXPOSURE, A CONTRACT REQUIREMENT, OR A GAP IN YOUR CURRENT AUTO PROGRAM. IF YOU WOULD RATHER TALK IMMEDIATELY, CALL / TEXT (412) 212-2800.