New Business Opportunity: Insurance for Car Dealerships

Beacon Hill has a successful history of writing car dealerships for agents around the country. Not only can we offer Storage Tank Coverage for any storage tanks the dealership has, we can offer Site Pollution Liability for the location.

Oil/grease spills, hydraulic lifts, petroleum products, and chemical storage are common pollution exposures at car dealerships. The Enhanced Fuel Solutions program can cover this range of exposures, and also provide Financial Responsibility needed for any onsite tanks. Coverage can be as broad or narrowly focused as your client desires.

Our program offers flexible, A+ rated coverage. Minimum premium starts at $700 including Site Pollution Liability.

In addition to writing car dealerships, we also specialize in many other risks that have storage tanks.

About storage tank coverage:

Owners and operators of Underground Storage Tank (UST) or Aboveground Storage Tank (AST) systems purchase environmental insurance for a number of reasons: to comply with lease/landlord requirements, because clients/suppliers require it, to act as a prudent risk management measure, and to comply with federal or state financial responsibility requirements. Financial responsibility requirements mean that owners and operators of storage tanks must show that they have the financial resources to clean up the site where their storage tank is located if a release occurs. This includes proof that they have the funds to correct environmental damage and compensate third parties for injury to their properties or themselves.

Although there are a number of different ways financial responsibility can be exhibited, including the use of a state fund, a guarantee, surety bond, letter of credit, trust fund, or passing a financial test (among other state methods), the use of environmental insurance offers clear advantages.

Advantages include:

  • Environmental insurance policies typically provide coverage for defense in the event of claims against owner/operators, while state funds generally do not.
  • Environmental policies are “pay on behalf” policies, where most state funds are “reimbursement” mechanisms.
  • Environmental policies provide coverage for third party bodily injury and property damage losses. Most state funds do not provide any coverage for those exposures until the clean up of the site is complete.
  • Self-insurance and letters of credit require that a certain amount of money be kept aside in order to be used to respond to environmental incidents. Environmental insurance allows entities to release these funds in order to use them for other company activities.
  • With an insurance policy, when you have a release or even, you call the carrier and they immediately get involved. With State funds, often the management of the clean-up is left in your hands, and you have to take the time and attention away from other matters to manage a very complex process.

Learn more about Beacon Hill’s Fuel Solutions program.