Petroleum Underground Storage Tanks Insurance
Financial responsibility of underground storage tanks can be dealt numerous ways including the financial test of self-insurance, the corporate guarantee, surety bonds, irrevocable standby letters of credit, and many more (while state funds and insurance are most often used). Insurance policies for underground storage tanks provide coverage for specific damages, injuries, or losses.
If you, the homeowner or the commercial tank owner, own the ust and are not covered by any state funds, purchasing environmental insurance is likely your next best choice.
Definition & regulation in u. S. Federal law[ edit ]
“underground storage tank” or “ust” means any one or combination of tanks including connected underground pipes that are used to contain regulated substances and the volume of which including the volume of underground pipes is 10 percent or more beneath the surface of the ground. This does not include, among other things, any farm or residential tank of 1,100 gallons or less capacity used for storing motor fuel for noncommercial purposes, tanks for storing heating oil for consumption on the premises, or septic tanks.
Owners and operators of underground storage tanks (usts) must show they have the financial resources to clean up a site if a release occurs, correct environmental damage, and compensate third parties for injury to their property or themselves. Financial responsibility is required for all regulated petroleum UST systems and must be maintained for the life of the system.
What is the history of the federal underground storage tank program?
until the mid-1980s most underground storage tanks (usts) were made of bare steel, which is likely to corrode over time and allow UST contents to leak into the environment. The greatest potential hazard from a leaking UST is that its contents (petroleum or other hazardous substances) can seep into the soil and contaminate groundwater, the source of drinking water for nearly half of all Americans.
To reduce, mitigate, and eliminate the threats to the environment posed by petroleum products or hazardous material or wastes released from underground and above ground storage tanks.
Damage to an Underground Storage Tank is Not a Covered Risk
You need to make sure that your homeowners’ insurance policy covers you in the event that you have a leaking tank, and doing so is becoming an increasingly difficult task. Many homeowner insurance companies are attempting to exempt leaking underground storage tanks from coverage. You need to read your policy and see whether or not leaking underground tanks, or damage stemming from leaking underground storage tanks is covered.
The Problem with Storage Tanks: What you Need to Know to Own or Operate
Currently, as a ust owner/operator, as long as you are compliant with federal and state regulations, you are free to operate your ust. The problems begin when the insurance marketplace will not provide financial responsibility for your ust due to the age of your tank. You could otherwise have a compliant 30-year-old tank, but as I mentioned earlier, once your storage tank sees its 20th birthday, it starts becoming difficult and cost prohibitive to insure (financial responsibility). Without the proper insurance for your tank, you are not compliant with federal and state regulations. There are no regulations pertaining to tank life and/or age, but there are financial responsibility requirements.
leaking underground storage tanks are a serious threat to groundwater supplies, especially if these tanks are located in sensitive groundwater areas. Sensitive groundwater areas are areas near public or private water supply wells and areas of aquifer recharge. Problems resulting from leaking tanks can include surface water contamination, surface, and subsurface soil contamination and property damage. Property damage can include seepage into buildings and damage to buried telephone conduits. Vapor leakage from underground tanks depends upon soil and weather conditions. Leaking vapors can cause health problems ranging from nausea to respiratory distress. The potential for combustion and fire is a concern for tanks located next to buildings since vapors may leak into the building.
A Brief History of Underground Storage Tanks
Article 12 of the Suffolk county sanitary code requires that toxic and hazardous material storage facilities be registered with the department of health services. Registration is a process of informing the county of the existence of storage tanks, both above and underground, drum storage areas, or other storage vessels that contain chemical substances that can contaminate groundwater.
farm and residential underground storage tanks with a capacity of fewer than 1,100 gallons which are used for storing motor fuel
underground storage tanks storing heating oil for consumptive use on the premises
tanks located at a US EPA superfund site.
The application of a red tag to the fill cap or fill point identifies an ineligible underground or aboveground storage tank. Deliveries to these tanks are prohibited until the removal of the red tag is authorized by the commissioner of the mpca or the red tag is removed by an agency certified installer who has provided documentation to the commissioner that the violations for which the system was red-tagged have been corrected.
Answers to your questions about underground storage tanks and additional resources that you may find helpful.
Lp-gas tanks, whether installed above or below ground, are still considered lp-gas tanks by the osfm and not an underground storage tanks. Therefore, underground lp-gas tanks, although required to undergo the osfm’s application and field inspection process upon installation or relocation,
and being subject to ill. Adm. Code 200 rule requirements, are not required to be registered or pay annual fees under the osfm’s ust regulatory program.
Workers Compensation – Lumber Industry
Our industry experts have access to multiple companies with coverage options like property insurance, inland marine, liability insurance, business auto, workers’ compensation, and umbrella policies. We can also provide a bond, cyber coverage for a data breach, employee benefits plus several specialty coverage items.
Court Finds That Split in Underground Storage Tank is Not a Covered Collapse
In the recent decision entitled Tustin field gas & food v. Mid-century ins. Co. (2017 wl 2839139) the second district court of appeals ruled a split in an underground storage tank, caused by the tank sitting on a rock for years, was not a covered “collapse” as a matter of law.
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