InFocus: Environmental and Pollution Liability

The unusual – but necessary – coverage for commercial clients

The unusual – but necessary – coverage for commercial clients

Fill in your email details for an immediate FREE download

Even though storage tank insurance may not be common, for those who operate one, it can mark the difference between viability and financial ruin in any event of a loss.
 
“This is a unique product that few Markets specialize in, but it’s an important coverage for the sector,” said Trisha Teoh, senior underwriter, South Western Group Ltd.  
 
Those who can benefit from these policies include:
  • Gas stations
  • Bulk fuel terminals
  • Airports
  • Truck stops
  • Rental car agencies
  • Farms
Moreover, not only does the coverage include the tank itself, but also any integral piping, fill points, dispensers, pumps and vapor recovery systems. It also extends to off-site cleanup costs and can be applied to retroactively for historic pollution.
 
Since a storage tank leak can affect surrounding properties, these advantages are imperative.
 
“In the case of a gradual leak from an underground storage tank at a gas station, gasoline or diesel fuel may contaminate the surrounding land,” Teoh said. “And if the neighbor happens to own a farm and crops are destroyed as a result of this, the loss could be devastating”.
 
With this coverage, however, that gas station would be protected.
 
“Our policy will offer cleanup costs, which could include removing contaminants, setting up barriers to prevent spreading, bio remediation” Teoh added. The policies will also look to cover decommissioning and replacement, as well as first party business interruption.
 
While some underwriters may be reluctant to touch storage tanks, South Western Group’s broad appetite means it is all-encompassing.
 
“We don’t shy away because of specifics. For us, as long as integrity test results are positive and we deem it’s an adequate risk, we will write it,” said Ghazal Hamid, branch manager, South Western Group Ltd.
 
This willingness, combined with the all-inclusive nature of the policies, has led to high levels of customer fulfillment.
 
“We’re incredibly gung ho about this product because the feedback has been nothing but positive,” Hamid said. “We can not only outprice our competitors, but we’re also able to provide broader parameters since our underwriting team understands these liabilities and aren’t afraid underwrite the exposure.”

Fill in your email details for an immediate FREE download

South Western Insurance Group Ltd. (SWG) is a Wholesale Insurance Intermediary / Managing General Agent offering a broad range of insurance solutions for specialty, niche, program and hard-to-place business. Since 1961 we have proudly provided underwriting expertise to independent insurance brokers across Canada.
We have earned a reputation for excellence in underwriting, risk management and customer service. We are continuously perfecting the way we do business and are satisfied with nothing less than the absolute highest level of service.
Using electronic delivery systems and paperless file management we have been able to significantly reduce document delivery time as well as more quickly respond to broker needs.
This gives brokers the ability to service their clients faster and increase their business.