Storage Tanks: Frequently Asked Questions
Beacon Hill Associates has a successful history of writing storage tank coverage for our agents and their insureds in nearly every state. Our exclusive Enhanced Fuel Solutions program is designed to meet the needs of businesses with unique premises specific exposures related to their fuel storage, electric charging, or other alternative fuel operations. If you are new to writing storage tanks, or would like basic information relating to this type of account, we hope you will take a look at our Storage Tank FAQs, below. Feel free to contact us with additional questions or to discuss a specific opportunity.
What is an AST (aboveground tank)?
Any tank with associated piping, and equipment connected thereto, which has more than 90% of its volume above ground.
What is an UST (underground tank)?
Any tank with associated piping, and equipment connected thereto, which has more than 10% of its volume below ground.
What is Financial Assurance (FA)?
Financial Assurance is when a facility is required by statute and regulation to maintain financial resources to adequately pay for closure, post closure (maintenance and monitoring), third party liability, and corrective action (clean-ups) at the facilities. These requirements are known as Financial Assurance or Financial Responsibility.
Why should I buy insurance if Financial Assurance is not required?
Whether your state requires proof of Financial Assurance or not, they will require that the property be cleaned up to EPA standards. Without the insurance, these costs will be incurred by the insured.
Why shouldn’t I use the state fund?
State funds often provide lower limits than are available in the insurance marketplace and are usually provided on a reimbursement basis. Some provide only 1st Party Clean Up with no coverage for 3rd Party Liability or Defense. Your insured should make sure they understand the scope of coverage being provided by the fund before choosing this as the mechanism for Financial Assurance. Most state funds cover only underground tanks, leaving your aboveground tanks without coverage.
For a complete list of our storage tank FAQs, please contact us.
Type: Blog
Topic: Storage Tanks
