Gas Stations / Pollution Coverage

[insurance1822]

Is pollution coverage always a separate policy? Is there ever coverage included on their GL for this? Do most gas stations carry this coverage?

 

[jlanier]

I have seen some carriers include it for gas stations in certain states for gas stations depending on the age of the tanks. Others have to get it separately (I think QBE writes most of them) pollution can often be endorsed for other types of businesses such as farms and distributors with a sublimit.

 

[MrGolf]

Most stations don't, and won't, carry pollution liability coverage as it is excluded under the GL. Now, most carriers will offer some property extension endorsement for "pollutant cleanup and removal" to come in and clean it up. But the liability is always excluded. I've tried to sell some of these pollution liability policies through ACE and some other carriers to our clients that are oil distributors. None of them purchase it. It's pretty expensive. About the only way you can pollution liability from a standard carrier is on the auto line for the distributors. It will have the wording that liability will extend from an auto in the "care, custody or control" of the insured.

 

[insurance1822]

Thanks for the response..

When you say they have an endorsement for some level of cleanup & removal...but the liability is excluded, what do you mean?

 

[MrGolf]

Thanks for the response..

When you say they have an endorsement for some level of cleanup & removal...but the liability is excluded, what do you mean?

The liability for the pollution is excluded. In other words, the policy isn't going to cover should the product (gasoline/diesel/etc.) somehow seep into the ground and get into John Doe's water well that he gets his drinking water from and he gets sick and goes to the hospital. Or if it seeped into a pond and Farmer Joe's cattle drink it and die. The liability coverage just isn't there.

The "pollutant cleanup and removal" that you are getting on an endorsement is a property level endorsement, not a liability level endorsement. It is just as it sounds. To pay for the EPA or some other haz-mat crew to clean the pollution up and remove it. Same thing goes for loss of product endorsements, those are just paying to replace the lost product, not to cover the liability exposure.

 

[hesse]

This is a portion of a PLUS endorsement to a Gas Station we write.

Like they said pollution is excluded by the GL but can be bought back with endorsement. Usually not enough coverage to cover something major but it does help.




Business Income From Dependent Properties $25,000
Forgery Or Alteration $5,000 $500
Money Orders And Counterfeit Paper Currency $5,000
Pollutant Clean Up And Removal $15,000