Underground Storage Tanks
About the Underground Storage Tank Program
In 1985, EPA created the Office of Underground Storage Tanks to carry out a Congressional mandate to develop and implement a regulatory program for underground storage tank (UST) systems.
What Is An Underground Storage Tank System?
An underground storage tank system is a tank and any underground piping connected to the tank that has at least 10 percent of its combined volume underground. The federal UST regulations apply to only underground tanks and piping storing either petroleum or certain hazardous substances.
Who Implements The UST Program?
The underground storage tank program is primarily implemented by states and territories. Your first point of contact is the state or territorial regulatory agency that has jurisdiction where the USTs are physically located. In Maryland this is the Maryland Department of the Environment, (MDE).
Where Is More Regulatory Information Available?
- U.S. Environmental Protection Agency link
- For Maryland Sites: Maryland Department of the Environment (MDE) link
Commercial Storage Tank Insurance:
Commercial Storage Tanks insurance provides coverage for releases commencing after the policy retroactive dates that emanated from scheduled storage tank systems for clean-up costs on-site and off-site as well as third-party losses. The coverage can be used to meet US EPA financial responsibility requirements
Also available is Dealer & Repair Pollution Liability insurance program. This program provides claims-made coverage for onsite cleanup costs and third-party bodily injury and property damage, including defense costs, for releases commencing after the policy retroactive date for scheduled locations and storage tanks. The coverage can be used to meet U.S. EPA Financial Responsibility requirements for regulated storage tanks.
Highlights of Commercial Storage Tank Insurance through Zurich Environmental include:
- Claims-made coverage
- Coverage for releases that start after the retroactive date on the policy
- Coverage for releases from scheduled storage tank systems
- Pays for necessary corrective action to clean up contamination from scheduled storage tanks
- Pays compensation for bodily injury and property damage to third parties that an insured is legally obligated to pay as a result of a release from a scheduled storage tank system
- Meets U.S. EPA Financial Responsibility requirements.
- Defense is provided outside the limit of liability
- Covers for spills from loading and unloading necessary to operate the tank system
- Automatic six month extended reporting period
- Deductible and pay on behalf wording
Generally, policies are written with limits of $1,000,000 for each claim and $1,000,000 total for all claims. Zurich Environmental can offer up to $50,000,000 in limits for this coverage subject to underwriting approval. Minimum policy premium is $425. Policies are generally written with per claim deductibles of $5,000 or $10,000 however deductibles can be offered up to $250,000, subject to underwriting approval.
Optional Coverages Available:
- Loss of business income
- Dedicated limits of liability per location
- Additional name insured per scheduled location
- Optional extended reporting period
- Underground and aboveground tanks with no age restrictions
- Petroleum based contents
- Tanks which are in U.S. EPA compliance
- Underground storage tanks with capacity up to 50,000 gallons
- Aboveground storage tanks with capacity up to 100,000 gallons
- Total combined capacity at location up to 200,000 gallons
- Locations with prior contamination generally are accepted
The following storage tanks are ineligible for coverage with Zurich Environmental:
- Tanks at marinas and airports.
- Tanks which are planned to be removed in the next three years
While not available through Zurich Environmental this coverage may be available through one of our Excess & Surplus Lines Insurance Carriers. Please call our office if you have a Marina or Airport storage tank system or if you have tanks that will be removed within three years..
Call Dean Insurance at 410.838.3700 for a quote on your individual or business insurance needs,
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