Storage Tank Insurance Claim Scenarios

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.

A UST leaks petroleum into a neighbor’s drinking water well. The well must be shut down and drinking water must be provided to neighboring properties and pipeline installed to municipal water supply, all at the tank owners expense.

An oily sheen was observed on a local stream. It was traced back to a slow leak from an underground tank at a service station. It was determined that the contamination had impacted the stream for over five miles. The station owner is responsible for clean-up and Natural Resources Damages. The estimated total costs are in the hundreds of thousands of dollars.

These claims examples have been provided to us by our insurance companies over the years. These represent actual environmental claims they have seen. While the coverages we offer are designed to address these general issues, we make no guarantee or warranty that any individual policy we offer will respond to all issues as described herein. Please refer to the actual policy wording in each offered form to determine coverage applicability and acceptability.