Think tank: Oil-heating season is back

How brokers can help businesses and homeowners who use oil-tank heating avoid losses

By: Anita Tomins
 
You can help keep your clients safe this winter.

It’s the “same oil story” every year at this time: the topic of oil-tank safety rises to the top. Puns aside, we all know oil spills are no laughing matter, causing hundreds of thousands of dollars in damage, downtime, and cleanup, not to mention dramatic environmental impacts. Luckily, you can help businesses and homeowners who use oil-tank heating to avoid such losses by providing preventative maintenance tips.

Major causes of leaks and spills

Corrosion
Though we may not all have heard of Microbial Induced Corrosion, most of us do understand the basics of its definition: oil and water don’t mix. MIC happens when micro-organisms in oil combine with trapped water in a tank, causing rust and creating costly leaks. And, thanks to the amount of condensation that occurs during Canada’s famously fluctuating seasons, outdoor tanks have a much higher chance of developing MIC. Water can also accumulate if the unit has been placed in direct contact with other surfaces, like a wall or berm.

Damage to fuel lines
Mother Nature (and especially her good friend, Jack Frost) can wreak havoc on oil lines themselves, rupturing pipes when water freezes and expands inside them, or when ground frost causes the lines to heave and break in half. More pedestrian causes of damage – quite literally – can be foot traffic and carts wheeled over conduits, or heavy objects falling on them.

Mechanical and human error
Occasionally, overfills can occur if vent alarms (whistles) aren’t working. But a more common cause of trouble is when owners take on installation or repairs as a DIY project. One of the most effective and important preventive measures your clients can take is to have their tank and piping inspected by their fuel-oil distributor at the beginning of each heating season.

Leave it to the pros

A qualified technician will thoroughly examine the tank’s condition, location, and exposure to hazards, including measuring the slack at the outlet to account for ground movement. They’ll also ensure piping is protected from damage and properly sloped to prevent water buildup. If problems with the lines are found, the technician can reroute them or provide guards in areas of foot or equipment traffic.

Larry Young, Senior Technical Consultant of Risk Services at Economical Insurance, says that the ideal tank is double wall or double bottom, has a leakage indicator and a bottom tap outlet (versus one on the side), and is located indoors. He recommends sharing these additional tips with clients:
  • If the tank must remain outside, install the oil filter indoors to prevent water accumulation and freezing.
  • Place a drip pan under indoor tanks to prevent leaks or spills from spreading.
  • Never replace a tank with a used one.
  • Never transfer oil from an existing tank to a new one. MIC that may have contaminated oil in an old tank could equally corrode the new one.
  • Make sure the tank meets code — look for the Underwriters Laboratories of Canada (ULC) label. 
Safety is an important message. Your clients should know to call their distributor immediately if they smell fuel, see a leak, or notice any signs of rust on the tank such as pitting, dampness, or spotting.

There’s a lot you can do to provide guidance and keep your clients from experiencing losses. After all, oil’s well that ends well.
 

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