Pollution Liability Insurance
What Is Pollution Liability Insurance?
Pollution liability insurance refers to a subcategory of environmental insurance that offers coverage for the costs of environmental damages that could occur in relation to the production, storage, or use of environmentally hazardous materials. Transportation of environmentally hazardous materials may be covered under a different type of insurance (for example, insurance for petroleum and gas distributors).
Types of Pollution Liability Insurance
There are several different types of pollution insurance. Site pollution liability or premises environmental coverage will vary according to whether one site or multiple sites need coverage, and whether the coverage needs to include activities that may occur at changing locations. For example, a contractors pollution liability insurance can cover contractor activities at different, changing locations. A pollution legal liability policy, however, offers pollution liability coverage on-site or on-premises for one particular, consistent location.
Some pollution liability insurance focuses on a specific subcategory of coverage. For example, Guardify offers pollution liability insurance for above-ground and underground storage tanks.
Federal & State Requirements for Environmental Insurance
Pollution liability insurance is often required by law. While federal laws may impose minimum regulations on a national level, states may institute additional environmental regulations on top of the federal requirements. Consequently, pollution liability insurance requirements may vary on a state-by-state basis. In some cases, a financial institution may require evidence of a pollution insurance policy in order to guarantee funding.
It is important to verify both state and federal requirements in order to make sure that your pollution insurance, operations, and equipment meet or exceed minimum regulatory standards. Lack of adherence to these minimum requirements could jeopardize or disqualify coverage in the event of claims.
Environmental requirements may be updated regularly, so checking for any updates that could influence your coverage should be an essential checklist item for both first-time coverage and coverage renewals.
How Do I Find the Right Kind of Pollution Liability Insurance?
When considering any kind of environmental risk insurance, it is important to consider the geographical range of your business. Verify that your business operations and equipment adhere to all federal or state regulatory requirements in that location, and then look for coverage options applicable to your region.
In addition to location, consider the types of operations, activities, equipment, and materials that require coverage. Your Guardify agent can help you consider how to package policies according to your unique needs, to make sure you have adequate coverage for all aspects of your business.
If you are renewing an existing policy, make sure that equipment models meet regulatory standards in order to ensure that your policy will cover claims.
Environmental insurance can take many forms. Guardify in particular focuses on offering pollution liability insurance for underground and above-ground storage tanks.
Guardify works with a carrier that exclusively specializes in pollution liability insurance for above-ground and underground storage tanks.
Policies meet and exceed state and federal requirements, and provide the most comprehensive coverage in the petroleum marketing industry.
- Guardify offers Above Ground (AST) and Underground Storage Tank (UST) Pollution Liability policies
- UST coverage is 40CFR compliant
- Coverage includes options for alternative fuels including biodiesel, E-15 & E-85
- Coverage includes Cleanup and Third-Party Liability Coverage
- Carrier offers a courtesy, no-cost annual loss control inspection
- Carrier offers immediate response to losses
- There is no tank age limit - no non-renewals due to tank age
Discounts are available for multi-site locations in order to support businesses and owner-operators seeking coverage for multiple locations.
Some businesses that may need AST or UST Pollution Liability Coverage include, but are not limited to, the following:
- Convenience Stores
- Gas Stations
- Co-ops
- Golf Courses
- Municipal Airports
- Marinas
- Hospitals
- School Districts
Coverage is currently offered in the following states: Arizona, Georgia, Kansas, New Mexico, Oregon, Texas, Utah, & Wisconsin
Pollution Liability for Above-Ground & Underground Storage Tanks in Texas
The Texas Commission on Environmental Equality requires owner-operators of Underground Storage Tanks (USTs) to demonstrate "Financial Assurance" for Underground Storage Tanks. Pollution Legal Liability Insurance qualifies as suitable financial assurance.
For other states, please refer to the state's appropriate environmental department, board, or commission for more information.