What is Storage Tank Pollution Insurance?
Storage tank pollution insurance is a specialized type of coverage designed to protect businesses from financial liabilities and environmental damage caused by chemical leaks or spills from storage tanks. Storage tank pollution insurance can cover both on-site contamination and off-site migration.
What Businesses Need Pollution Storage Tank Coverage?
Any company that operates aboveground or underground storage tanks should consider securing this coverage, including:
- Gas stations
- Garages and service stations
- Hospitals, academic institutions, and municipal properties (police, fire, etc.)
- Farms
- Manufacturers
- Industrial sites
- Car rental and car dealerships
- Marinas
- Construction companies
- Trucking, transportation, and courier companies
On-site Contamination vs. Offsite Contamination Migration
When it comes to storage tank pollution, the risks aren’t confined to just one area. Pollution from storage tanks can have significant and far-reaching impacts, making it essential to understand the differences between on-site contamination and off-site migration.
On-site contamination occurs when pollutants or hazardous materials leak or spill directly into the soil, groundwater, or surface water at the storage tank’s location. Some examples of on-site contamination include:
- Leakage of petroleum products from corroded tanks
- Overflow spills during the filling process
- Seepage into the soil due to improperly sealed tanks
On the other hand, off-site migration refers to the gradual movement of pollutants away from the immediate location of the storage tank, contaminating surrounding properties and waterways. Off-site migration can occur over weeks, months, or even years, often leading to undetected pollution issues that result in third-party claims for bodily injury, property damage, and environmental remediation. Some examples of off-site migration risks include:
- Groundwater contamination that spreads to neighbouring properties
- Surface water pollution impacting nearby streams or lakes
- Vapor intrusion causing harmful air quality in adjacent buildings
What Does Storage Tank Pollution Liability Insurance Cover?
Storage tank pollution liability insurance can cover:
- Clean up costs from spills due to filling
- On and off-site clean-up and remediation expenses from tank leakage
- Third-party claims alleging a leak or spill caused bodily injury or property damage
- Corrective action costs associated with the discovery of a leak or spill
- Both on-site contamination or offsite migration pollution costs
It’s important to note that remediation costs are just one potential expense, as property damage, death, or illness to others are also significant insurable risks. This insurance covers the costs associated with practically any damages resulting from pollution from underground and aboveground storage tanks.
Given the potential high costs and legal ramifications of a spill, this insurance is essential for any business that uses storage tanks for chemicals, petroleum products, and other hazardous materials.
How Much Does Storage Tank Pollution Liability Coverage Cost?
Annual premiums for storage tank pollution coverage start at $1,500 and increase based on tank size, age, etc. The best way to find out how much insurance your storage tank needs is to contact us or get a quote!
Align Your Business With Appropriate Storage Tank Pollution Insurance
Protect your business, the environment, and your peace of mind by ensuring you have adequate storage tank pollution coverage.
Choosing the right storage tank pollution insurance requires understanding your business’s specific needs and risks. At ALIGNED Insurance, we specialize in helping businesses like yours navigate the complexities of environmental liabilities.
Our team of expert brokers is dedicated to providing tailored insurance solutions that align with your operational requirements and risk management strategies. Contact us or get an online quote!
