What is Drilling/UST and AST Contracting?
Drilling/UST (Underground Storage Tank) and AST (Aboveground Storage Tank) contracting involves the installation, removal, maintenance, or repair of storage tanks used to hold petroleum products, chemicals, or other hazardous materials. Contractors in this field often work directly with the soil and underground systems, increasing the risk of environmental exposure, contamination, and property damage.
This type of work is highly specialized and often regulated by state and federal environmental laws. Because of the inherent risks, having proper insurance coverage is critical for businesses that perform drilling and tank-related services.
Who Needs It
Insurance for Drilling/UST and AST contractors is essential for businesses involved in:
- Environmental drilling and soil sampling
- Installation or removal of underground or aboveground storage tanks
- Tank cleaning and maintenance
- Leak detection and remediation
- Environmental site assessments
These contractors are often required to show proof of insurance before starting work on a job site, especially when working with government agencies or large commercial clients.
What It Typically Covers
Coverage for Drilling/UST and AST contractors is usually part of a specialized environmental insurance policy or a contractor’s pollution liability policy. It may include:
- General liability
- Pollution liability
- Professional liability (errors and omissions)
- Contractor’s equipment coverage
- Workers’ compensation
- Commercial auto insurance
These policies are designed to protect against claims of property damage, bodily injury, and environmental harm caused by contracting operations.
Common Exclusions and Limitations
While this insurance offers broad protection, it often excludes certain risks. Common exclusions may include:
- Intentional acts or willful misconduct
- Known pre-existing pollution conditions
- Claims arising from unreported incidents
- Asbestos or lead contamination (unless specifically endorsed)
Reviewing policy language carefully is important to understand what is and isn’t covered.
Factors That Influence Cost
Several factors can affect the cost of insurance for Drilling/UST and AST contractors:
- Type and scope of services provided
- Company size and payroll
- Years of experience and safety record
- Location and regulatory requirements
- Coverage limits and deductibles selected
Insurers may also consider past claims history and the types of tanks or chemicals involved in your operations.
Proof of Insurance and Compliance
Many clients, especially in commercial or government sectors, require contractors to provide certificates of insurance before work begins. This serves as proof that your business has adequate coverage. State and federal regulations may also mandate specific types of insurance for working with underground or hazardous systems. Be sure to verify local requirements to stay in compliance.
How to Get a Quote
To protect your business and meet industry requirements, it’s important to get coverage tailored to your operations. Get a customized insurance quote today.
Frequently Asked Questions
What is the difference between UST and AST insurance coverage?
UST covers underground storage tank operations, while AST applies to aboveground tanks. Both typically fall under environmental or pollution liability insurance.
Is pollution liability insurance required for tank contractors?
It’s often required by clients and may be mandated by state or federal guidelines, depending on the scope of work and location.
Does general liability insurance cover environmental damage?
Not usually. Environmental damage is typically excluded from general liability policies and requires a separate pollution liability policy.
Can I be covered for past contamination issues?
Most policies exclude known pre-existing contamination. However, some insurers offer limited coverage with specific endorsements.
How do I prove I have the required insurance for a job?
You can request a certificate of insurance from your provider, which outlines your active coverage and limits.
Still have questions? Talk to a local insurance expert.