UNDERGROUND STORAGE TANK (UST) POLLUTION LIABILITY INSURANCE
UNDERGROUND STORAGE TANK POLLUTION LIABILITY INSURANCE EXISTS BECAUSE STORAGE TANK RISK CAN SIT QUIETLY FOR YEARS BEFORE IT BECOMES A SERIOUS FINANCIAL PROBLEM. WHEN A UST ISSUE TURNS REAL, THE COSTS CAN MOVE FAST AND THE LIABILITY CAN REACH FARTHER THAN THE OWNER EXPECTED.
IF YOUR BUSINESS OWNS, OPERATES, USES, OR DEPENDS ON UNDERGROUND STORAGE TANKS, THIS IS NOT A COVERAGE DISCUSSION TO TREAT CASUALLY. THIS PAGE EXISTS BECAUSE TANK-RELATED ENVIRONMENTAL LIABILITY DESERVES ITS OWN CONVERSATION, ITS OWN DECISION PATH, AND ITS OWN INSURANCE REVIEW.
PROPERTY OWNERS WITH USTS, GAS STATIONS, PETROLEUM OPERATIONS, FUELING FACILITIES, OWNERS OF SITES WITH UST HISTORY, BUSINESSES WITH UST EXPOSURE, DEVELOPERS ACQUIRING PROPERTIES WITH TANK ISSUES, AND OPERATORS RESPONSIBLE FOR TANK-RELATED RISK.
THIS PAGE EXPLAINS WHY UST EXPOSURE IS SO SERIOUS, WHY STANDARD PROPERTY OR LIABILITY COVERAGE MAY NOT BE ENOUGH, WHAT TYPES OF LOSSES DEVELOP, AND WHICH RELATED KELLY INSURANCE GROUP PAGES YOU SHOULD REVIEW NEXT.
UNDERGROUND STORAGE TANK ISSUES CAN STAY HIDDEN UNTIL THE LOSS IS ALREADY LARGE
UNDERGROUND STORAGE TANK ISSUES ARE DANGEROUS BECAUSE THEY CAN DEVELOP QUIETLY. A PROBLEM MAY NOT BE VISIBLE IMMEDIATELY. BY THE TIME IT IS DISCOVERED, THE LOSS MAY INVOLVE SOIL IMPACT, GROUNDWATER IMPACT, CLEANUP COSTS, DEFENSE COSTS, REGULATORY ATTENTION, PROPERTY VALUE ISSUES, AND THIRD-PARTY CLAIMS. THE FACT THAT THE TANK IS BELOW GRADE DOES NOT MAKE THE RISK SMALLER. IN MANY CASES, IT MAKES THE RISK HARDER TO DETECT AND HARDER TO CONTROL.
HARD-TO-DETECT LOSSES
TANK ISSUES MAY DEVELOP QUIETLY OVER TIME, WHICH MEANS THE PROBLEM CAN GROW BEFORE THE OWNER FULLY UNDERSTANDS WHAT IS HAPPENING.
SOIL & GROUNDWATER EXPOSURE
A UST EVENT CAN AFFECT MULTIPLE ENVIRONMENTAL MEDIA, WHICH MAKES THE COST AND SCOPE OF RESPONSE MUCH BIGGER.
PROPERTY VALUE IMPACT
A TANK ISSUE CAN HURT SALE, REFINANCE, DEVELOPMENT PLANS, AND THE LONGER-TERM VALUE OF THE PROPERTY.
REGULATORY PRESSURE
TANK-RELATED LOSSES CAN BRING CLEANUP DEMANDS, REPORTING EXPECTATIONS, AND A MUCH MORE SERIOUS LIABILITY DISCUSSION.
UST-EXPOSED OPERATIONS THAT SHOULD TAKE THIS SERIOUSLY
THE FOLLOWING OWNERS, OPERATORS, AND PROJECT TEAMS SHOULD NOT TREAT THIS AS A MINOR PROPERTY INSURANCE QUESTION.
WHERE UST POLLUTION LIABILITY PROBLEMS USUALLY START
PROPERTY AND LIABILITY COVERAGE DO NOT AUTOMATICALLY SOLVE TANK PROBLEMS
OWNERS OFTEN ASSUME THAT IF THERE IS A TANK ISSUE, THEIR ORDINARY PROPERTY OR LIABILITY INSURANCE WILL JUST HANDLE IT. THAT ASSUMPTION CAN BE VERY EXPENSIVE. UST-RELATED ENVIRONMENTAL LIABILITY DESERVES ITS OWN CONVERSATION BECAUSE THE RISK PROFILE IS DIFFERENT, THE LOSS MECHANICS ARE DIFFERENT, AND THE CLEANUP EXPOSURE CAN BE SIGNIFICANT.
SLOW LEAK DISCOVERY
THE LOSS MAY NOT LOOK LIKE ONE BIG EVENT. IT MAY LOOK LIKE A PROBLEM THAT GREW QUIETLY UNTIL IT COULD NO LONGER BE IGNORED.
GROUNDWATER IMPACT
ONCE THE LOSS REACHES GROUNDWATER, THE COST AND COMPLEXITY OF THE RESPONSE CAN INCREASE DRASTICALLY.
PROPERTY VALUE DAMAGE
THE COST OF A UST ISSUE IS NOT JUST CLEANUP. IT CAN CHANGE WHAT THE PROPERTY IS WORTH AND HOW EASY IT IS TO FINANCE OR SELL.
THIRD-PARTY CLAIMS
A TANK ISSUE MAY NOT STAY ON THE OWNER’S PROPERTY IF OTHER PROPERTIES OR OTHER PEOPLE CLAIM THEY WERE IMPACTED.
DEFENSE COSTS
EVEN BEFORE LIABILITY IS FULLY ESTABLISHED, THE LEGAL AND TECHNICAL COSTS OF DEFENDING THE MATTER CAN GROW FAST.
TRANSACTION DELAY
A UST PROBLEM CAN INTERRUPT A SALE, REFINANCE, DEVELOPMENT PLAN, OR INVESTMENT DECISION AT EXACTLY THE WRONG TIME.
WHY BUSINESSES REVIEW UST POLLUTION LIABILITY COVERAGE
MOST BUYERS OF THIS COVERAGE ARE TRYING TO SOLVE A REAL PROPERTY OR PETROLEUM RISK PROBLEM, NOT BUY SOMETHING THEORETICAL.
LEAKING TANK RISK
THE MAIN REASON TO REVIEW THIS COVERAGE IS SIMPLE: A TANK ISSUE CAN CREATE A VERY LARGE ENVIRONMENTAL LIABILITY PROBLEM.
CLEANUP COST CONCERNS
OWNERS NEED A BETTER WAY TO THINK ABOUT THE COST OF RESPONDING TO A TANK-RELATED EVENT.
TRANSACTION SUPPORT
THIS DISCUSSION OFTEN BECOMES IMPORTANT DURING SALE, REFINANCE, ACQUISITION, OR DEVELOPMENT OF TANK-EXPOSED PROPERTY.
PROGRAM GAPS
MANY BUYERS REVIEW THIS COVERAGE BECAUSE THEY REALIZE THEIR EXISTING PROPERTY OR LIABILITY PROGRAM WAS NEVER A CLEAN ANSWER TO UST RISK.
UST, PETROLEUM, PROPERTY, AND ENVIRONMENTAL LIABILITY PAGES TO REVIEW NEXT
USE THE COLORFUL LINKS BELOW TO MOVE INTO THE PETROLEUM, PROPERTY, TRANSACTION, OR SUPPORTING ENVIRONMENTAL LIABILITY CONTENT THAT FITS YOUR SITE.
COMMON UST POLLUTION LIABILITY QUESTIONS
WHAT IS UST POLLUTION LIABILITY INSURANCE?
WHO NEEDS TO REVIEW THIS COVERAGE?
WHY IS UST RISK SO DANGEROUS?
IS THIS THE SAME AS ORDINARY PROPERTY INSURANCE?
WHEN SHOULD THIS COVERAGE BE REVIEWED?
REQUEST HELP WITH UNDERGROUND STORAGE TANK (UST) POLLUTION LIABILITY INSURANCE
USE THE FORM BELOW IF YOU WANT TO DISCUSS TANK-RELATED ENVIRONMENTAL LIABILITY, A PROPERTY WITH PETROLEUM EXPOSURE, A SALE OR REFINANCE INVOLVING UST RISK, OR A HARD-TO-PLACE SITE THAT NEEDS A SERIOUS INSURANCE REVIEW.