The EPA regulates more than 558,000 active underground storage tanks at approximately 200,000 sites across the United States. That’s a lot of fuel and chemicals stored underground, and a lot of potential for harm and damage. Many of those storage tanks belong to gas stations.
In 2018, there were 2,829 confirmed tank releases from an array of facilities. The cost to clean up the damage and deal with injury and harm isn’t cheap. The average cost to clean up an underground storage tank release is $158,245. That means some releases cost less, but some cost a lot more.
As a gas station owner, you’re responsible for any damages from an accident or release involving your underground storage tanks. Underground storage tank (UST) insurance helps you meet that requirement with less out-of-pocket expenses for your business.
What Underground Storage Tank Insurance Covers
Underground storage tank insurance is a form of liability coverage that pays claims of bodily injury and property damage made by third parties as a result of pollution conditions caused by your underground storage tank.
UST insurance also helps pay the legal defense costs that arise from legal action brought by third parties harmed after a release or other accident. It can also help with image restoration for your business and brand, as well as provide coverage for emergency expenses.
Having a storage tank leak or release fuel into the ground is both a financial nightmare and a PR nightmare. The right UST insurance coverage can help with both.
Proof of Financial Responsibility
As a gas station owner, you also need to be able to show proof of financial responsibility for your underground storage tanks. The requirement varies, depending on the number of tanks you own:
- $500,000 for less than 100 tanks owned
- $1,000,000 for an output of 10,000 gallons per month or 100-plus underground storage tanks
The most affordable way to show this proof of financial responsibility is with an underground storage tank insurance policy. You don’t need to have this amount of cash on hand. You only need a policy that shows you can accept the financial responsibility.
Underground storage tank insurance protects you and your business from the financial expense of claims after a release or failure. It also offers an affordable method to show proof of financial responsibility when you’re ready to open a new gas station.
Whether you’ve owned a gas station (or multiple stations) for years or you’re opening your first one soon, Charlotte Insurance can help you protect your business with the right insurance coverage. Contact us today for more information and a free quote for an underground storage tank insurance policy.