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State Funds for Storage Tanks - Sunsetting on Necessary Coverage |
Each year, more states continue to sunset their funding for underground storage tanks. However, the EPA requires UST owners and operators have the ability to pay for cleanup or third-party liability compensation. |
What are the state funds?
Unlike other types of environmental insurance, the USEPA requires underground storage tank owners to have coverage for spills and third-party liability compensation. Underground storage tanks, commonly found at gas stations, airports, warehousing locations and other commercial properties, are one of the most common sources of groundwater pollution. Unfortunately, these tanks are typically located near cities and residential areas. Cleanups can be costly too. Remediation for a single location can sometimes rack up a $1 million bill.
To remediate this problem, states started setting up a combined fund to alleviate the cost of spills and other expenses. Currently, 35 states have state financial assurance funds. Not only do these funds help UST owners comply with the EPA’s regulatory requirements, but they also help pay to cleanup newly reported releases. According to the Association of State and Territorial Solid Waste Management Officials (ASTSWMO) State Fund Survey, since the creation of these funds, states have spent $25 billion in tank cleanup.
Learn more about financial assurance for storage tanks! |
Don’t let your state's fund sunsetting leave you in the dark. We encourage you to explore our storage tank-related educational webpage to learn about the impact environmental pollution exposures may have on your clients’ operations and to discover the right coverage solutions for them. |
How will my client be affected?
Last year, Arizona and Colorado were added to the list of states who will no longer be accepting new business into their state fund insurance. This year, Kansas and Nebraska are joining them. Below are the states who by the end of 2024 will have sunset their state financial assurance funds for USTs:
Your client still has time though! States who have recently sunset their programs will still be assisting with costs if the owner was previously covered under the state program. After that, the tank owner will have to find financial assurance coverage elsewhere. |
Enter TankAssure®
The TankAssure program provides aboveground and underground storage tank owners comprehensive coverage and may also be used to satisfy financial assurance requirements put in place by local, state and federal government agencies. Tank spills can happen at any place at any time, from damage to the tank itself to faulty gas pumps and leaking pipes. Since spills can be highly damaging and costly, finding a carrier that will help remediate these costs is important.
We know your time is valuable and the process of submitting numerous quote applications can be tedious. With this in mind, we streamlined our online quoting process to allow you to view multiple quote options with just one easy application.
Visit the TankAssure Webpage |
View the Program Overview |
If you have a submission that falls outside of coverage considerations for the TankAssure program, we can provide you a quote directly through one of our team’s environmental underwriters. If you have any questions, please contact our TankAssure team.
Ready for a quote?
Use our custom quoting tool to receive your personalized underground storage tank insurance quote in minutes! Learn how in the video on the right. |
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Want to learn more about tanks and TankAssure? Check out the resources below!
Check out our new Tank Riskopolis! |
Storage tanks are necessary in a variety of industries including warehousing, trucking and logistics, service stations, aviation and more. Pollution concerns stemming from faulty installation or outdated parts can cause environmental catastrophes almost anywhere. Can you spot the environmental risks hiding in the scene?
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