environmental Strategist, between the lines: Below is a You Tube video that does an excellent job of explaining how an underground storage tank (UST) operates. Under Federal law, regulated UST’s must evidence financial assurance should there be a release from the UST system.
The problem facing UST owners today is the age of their tanks. Back in the 1990’s the Federal Government established financial assurance requirements but never consulted with the insurance industry to find out what the insurability of a 20 or 30 year old tank system would be. Now we have an aging UST’s in the United States and for the most part, tank owners have not budgeted to replace their systems and find themselves caught
If you have insureds with tanks over 20 years old you need to coach them up on replacing their tanks. Once a tank reaches 25 years old there are just a couple of insurance carriers that will offer coverage and the premiums and deductibles go up drastically and retro dates are shortened. For tanks over 30 years old it is a crap shoot if any insurance carrier will offer coverage.
As your environmental team member, ERMI is ready to assist you and your insureds with their UST financial assurance needs.