What is Tank Installation and Service (UST/AST)?
Tank Installation and Service coverage provides insurance protection for businesses that install, maintain, or service underground storage tanks (USTs) and aboveground storage tanks (ASTs). These tanks are commonly used to store fuel, oil, chemicals, or other hazardous materials. The policy helps protect against liability and property damage that may occur during installation, repair, or regular maintenance.
Who Needs It
This coverage is essential for contractors and companies involved in the installation or servicing of USTs and ASTs. Typical businesses include environmental contractors, petroleum contractors, fuel distributors, and tank maintenance service providers. Even occasional service or installation work may require coverage, especially if contracts or clients demand proof of insurance.
What It Typically Covers
Coverage can vary by policy, but commonly includes:
- Third-party bodily injury or property damage from installation or service operations
- Pollution liability during tank installation or service
- Errors or negligence in tank placement or repair
- Cleanup costs associated with accidental spills or leaks
Some policies may also include products and completed operations coverage after work is finished.
Common Exclusions and Limitations
Policies generally exclude:
- Intentional acts or gross negligence
- Pre-existing pollution conditions
- Claims related to tanks not installed or serviced by the insured
- Fines, penalties, or regulatory violations
Always review policy terms carefully to understand what is and isn’t covered.
Factors That Influence Cost
Several factors affect the cost of tank installation and service insurance:
- Type and size of tanks being installed or serviced
- Volume and scope of operations
- Claims history and safety record
- Types of materials stored in the tanks
- State-specific regulations and risk factors
Working with an experienced insurance provider can help tailor coverage to your needs.
Proof of Insurance & Compliance
Many states require businesses that handle tank installation or service to carry proof of liability and pollution coverage. Clients may also require certificates of insurance as part of contract agreements. While requirements vary by jurisdiction, maintaining proper coverage helps ensure compliance and builds trust with customers and regulators.
How to Get a Quote
Getting the right coverage starts with a personalized quote. Request a quote to explore options tailored to your business needs.
Frequently Asked Questions
What’s the difference between UST and AST insurance?
UST refers to underground storage tanks, while AST refers to aboveground tanks. Insurance may differ based on the type of tank due to varying risk levels and regulations.
Is pollution liability included in this coverage?
Many policies offer pollution liability as part of coverage, particularly for spills or leaks during installation or service. Always confirm with your provider.
Do I need coverage if I subcontract tank installation?
If your business is responsible for the work, you may still be liable. Coverage can help protect against claims, even if the work is subcontracted.
Are routine inspections covered?
Routine inspections may be covered depending on the policy. It’s important to clarify whether ongoing service and monitoring are included.
Can I get coverage for past installations?
Most policies cover work going forward, but some may offer limited coverage for completed operations. Ask your provider about options for past work.
Still have questions? Talk to a local insurance expert.