Victor, a global managing general underwriter (MGU), has introduced an environmental liability insurance program targeting small businesses in the United States with above-ground and underground storage tanks.
The new product offers coverage for losses stemming from pollutant releases, including on-site clean-up.
The insurance program, created in partnership with Aspen Insurance, is available to brokers on a non-admitted basis through Victor’s professional liability for architects and engineers practice. It offers policy limits of up to $5 million and is available across all 50 states and Washington, D.C.
Businesses that typically require this type of coverage include gas stations, auto dealerships, convenience stores, and commercial operations with fuel storage needs. These entities are often subject to stringent environmental regulations, particularly those enforced by the US Environmental Protection Agency (EPA).
The EPA mandates that owners and operators of underground storage tanks demonstrate financial responsibility, either through insurance or other mechanisms, to cover clean-up costs and third-party damages resulting from leaks or spills.
These costs can vary significantly, with expenses ranging from $10,000 to more than $1 million, depending on the extent of the damage.
“Storage tank liability insurance is highly complex and requires specialized knowledge,” said Kevin Collins (pictured above), architects and engineers practice leader at Victor.
Cost is another consideration for businesses operating older infrastructure. Storage tanks over 30 years old tend to be harder to insure due to the increased risk of corrosion and leakage, which can lead to coverage limitations or higher premiums.
Entry-level premiums for storage tank liability insurance typically start around $750 per year, though pricing varies based on tank age, material, location, and compliance history. Coverage limits can extend into the millions, depending on the risk profile and needs of the business.
Vanessa Cole, senior vice president and program manager for A&E Small Firms at Victor, said the coverage gives small businesses added protection from potential clean-up and legal costs.
“The coverage also helps storage tank owners comply with environmental regulations,” Cole said.
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