Why Environmental Impairment Liability is Essential for Clients Who Own or Operate USTs

Do your clients who own or operate underground storage tanks (UST) for fuel or hazardous materials think they are protected by their oil companies or the EPA Super Fund? They aren’t, and you can help them realize the full legal and financial risks and responsibilities associated with Underground Storage Tank Pollution Liability.

Why do Owners and Operators Need Their Own Liability Coverage?

Owners and operators are not only liable for bodily and property damage; they also have a financial responsibility under Resource Conservation and Recovery Act (RCRA) to cover corrective actions that might be needed after an event that impacts the environment. If a manufacturer’s UST leaks into the soil or water and causes contamination, the operator is responsible for environmental clean-up and monitoring.

Don’t let your service station clients believe that their big oil company is responsible, or is carrying the insurance for them. If your client has purchased the land on which their gas station resides, from an oil company, they are now required to carry their own environmental impairment liability (EIL) and add the oil company as an Additional Insured.

The Super Fund is NOT a Substitute for EIL

Have you heard your clients tell you that they aren’t worried about having an EIL policy because they know the EPA Super Fund will cover them if they are uninsured? If so, it’s time to educate them on the limitations of the Super Fund. The Super Fund ONLY applies to situations where an owner has gone bankrupt and cannot afford the costs of clean-up. Your clients are better off being insured to begin with, rather than going bankrupt and losing their business due to an incident that impacts the environment.

Which Clients Benefit from a Pollution Liability Policy?

Many of your customers will fit the profile for UST pollution liability, and some include:

• Gas stations
• Universities
• Golf courses
• Car dealerships
• Hospitals
• Hotels

What Does an EIL Policy Cover?

Policies differ, but most will offer coverage for:

• Third-party bodily injury
• Property damage claims
• Spills occurring during loading and unloading of tanks
• Releases from scheduled UST systems
• Costs of corrective action

Keep in mind that an EIL policy is recommended in addition to UST coverage, since a UST policy only responds to corrective actions under RCRA.

How can you help your clients?

Talk to your clients about:

• Their risks
• Their legal responsibilities
• The different types of coverage available
• The limitations of the Super Fund

Next Steps…

Access E&S offers a wide range of environmental coverage that can help you find the right type of EIL coverage for your clients. Contact us today!

Download: Pollution Liability – Underground & Above Ground Storage