What is Pollution Liability Insurance for Gas Stations?
Pollution liability insurance for gas stations is a specialized form of coverage that helps manage the risks associated with the accidental release of hazardous substances in the environment, such as:
- Gasoline
- Diesel
- Lubricants
- Solvents
- Paint etc.
This insurance coverage is important as it addresses gaps that are not typically covered by general business insurance policies, providing specific protection against contaminated soil and related environmental liabilities.
What Does Pollution Liability Insurance for Gas Stations Cover?
Gas station pollution liability insurance can cover some or all of the following:
- Clean up costs
- Legal defence fees
- Third-party claims for bodily injury or property damage
- Emergency response
Examples of Gas Station Pollution Liability Insurance
Here are a few scenarios where pollution liability insurance would be highly beneficial for a gas station:
- An underground storage tank corrodes and leaks petroleum products into the surrounding soil and groundwater.
- Accidental spills occur while fuel is being transferred from delivery trucks to underground tanks, leading to ground and water pollution.
- Overfilling of tanks causes spills, leading to significant environmental harm.
- Volatile organic compounds (VOCs) escape into the air during the fuel dispensing process, contributing to air pollution and potential health risks to nearby communities.
- Gas pump malfunctions, such as faulty valves or pumps, result in leaks or spills during fuel dispensing operations, contributing to environmental damage.
- It’s discovered that the on-site car wash wastewater collection unit has not been working properly for years and the soil on site and on a neighbouring site is contaminated.
Is Gas Station Pollution Liability Coverage Optional?
Although gas station pollution insurance is optional coverage, it is highly recommended for any gas station owner as it can help mitigate the significant financial and legal risks associated with pollution accidents.
Without adequate coverage from an insurance company, gas station owners could be left financially vulnerable to costly cleanup expenses, legal fees, and potential fines or penalties imposed by environmental regulators.
Ultimately, while it may be optional, investing in gas station pollution liability insurance is a proactive and prudent decision to protect the long-term success and sustainability of the business.
Align Your Gas Station With Appropriate Pollution Insurance
It’s critical to align with the right insurance coverage to protect your gas station against the inherent risks of handling hazardous materials.
Aligned Insurance understands the unique needs and challenges that gas station owners have and offers tailored insurance solutions that provide comprehensive protection against pollution-related incidents.
Get an online quote or contact us to ensure you have adequate pollution liability coverage to protect your gas station business and its future.
