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Dating underground tank

By Janet Hunt Today’s businesses face many unique environmental exposures that call for environmental insurance and this is especially true for those businesses who own underground storage tanks.An underground storage tank containing hazard materials can leak and the clean-up can cost a business owner hundreds of thousands or even millions of dollars depending on the extent of the leakage.

Pollution liability insurance very often excludes underground storage tanks which created a need for a policy dedicated specifically to this unique risk.Unless a business owner has hundreds of thousands of dollars at his disposal, it is a good idea to purchase this insurance for those owning underground storage tank facilities. Clean-up from an underground storage leak is a very detailed and complex process involving a number of factors.The average costs of an underground storage tank clean-up is $130,000.However, very small leaks where only a small amount of soil needs to be removed may cost as little as $10,000.Very extensive clean-up operations where soil is heavily contaminated and ground water is also affected can run well over $100,000 and may even go into the millions in clean-up costs.Another reason to consider underground storage tank liability insurance is interruption of your business operations.

Not only do you have to consider environmental factors, but you may also have to close down your business operations while the clean-up is in process.

You may have to evacuate and temporarily relocate your business.

All of this costs you money and is covered by your underground storage tank liability insurance policy.

In addition to site remediation (clean-up) and business interruption insurance, your underground storage tank liability insurance also covers third party damages such as bodily injury and property damage as well as devaluation to your property and to the property of others caused by your underground tank leakage.

You also have some coverage to take care of criminal and civil penalties and any adverse publicity your company receives because of the event.

There are some important environmental statutes regulating hazardous wastes and exposures that you as a business owner should know about: Estimates for 2013 indicate that there are approximately 581,000 underground storage tanks at over 200,000 sites in the United States.

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