Commercial Storage Tank

overview | customer profile | coverages | limit of capacity | case studies | integration, claims and underwriting | risk management services


Overview
The storage tank pollution liability policy covers releases commencing after the policy retroactive date that emanate from scheduled storage tank systems for cleanup costs on-site and off-site and third-party loss. The coverage can be used to meet U.S. EPA Financial Responsibility requirements.

Customer Profile
Our storage tank pollution liability coverage is used by a wide variety of customer groups. The following is a partial list of the customer group we serve:

  • Gas stations and convenient stores
  • Schools
  • Golf courses
  • Car dealers
  • Hospitals
  • Condominiums
  • Hotels

Coverages
  • Claims-made coverage
  • Coverage for releases that start after the retroactive date on the policy
  • Coverage for releases from scheduled storage tanks 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
  • Covers spills from loading and unloading to operate the tank system
  • Automatic six-month extended reporting period (ERP) plus optional ERP
  • Deductible and “pay on behalf” wording

Limit of Capacity
  • Up to $50 million.


Case Studies
Manufacturer
A diesel fuel tank system’s piping released a substantial amount of fuel into soil and groundwater that eventually migrated to a nearby stream. Subsequent soil and groundwater remediation costs of $600,000 were incurred to satisfy environmental regulators and settle the claim.

Gas station
A motorist collided with a fuel pump causing piping to be disrupted and fuel to be released. A claim payout of $35,000 was incurred for necessary soil remediation.

Fuel oil distributor
Corrosion in an aboveground storage tank caused a leak resulting in soil and groundwater contamination. Cost to remediate was $270,000.

Integration, Claims and Underwriting
Integration
The Zurich environmental team works together in order to provide you with the best product. Our underwriting staff coordinates with our claims and risk management departments to provide you with the foremost coverage available.

Claims
The Zurich environmental team understands that in the eyes of our customers, claims handling is probable the most important function we can perform. Therefore, we strive to settle and resolve claims in an intelligent, professional and expedient manner.

Underwriting
Our underwriters come from multidisciplined backgrounds and have experience that may lead to anticipating potential problems. This knowledge also allows our underwriters to construct comprehensive coverage programs, which may result in less uncertainty at the time of loss.

Risk Management Services
Our risk management services are tailored to your needs and can include the following:

  • Training and seminars
    • Contract risk management
    • Indemnity and insurance
    • Use of insurance in environmental transactions
    • Lender liability and insurance
    • Government contracts: special issues in the privatization market
    • Contract reviews
  • Claims counseling
  • Risk management and environmental health and safety (EH&S)
  • Policy and program reviews

 

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Policies are underwritten by the member companies of Zurich North America, including Zurich American Insurance Company
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