What is Towns/EnviroGuard Storage Tank Program?
The Towns/EnviroGuard Storage Tank Program is a specialized insurance solution designed to help protect businesses that own or operate underground and aboveground storage tanks. These tanks often store fuel, chemicals, or other potentially hazardous materials. The program offers coverage for environmental liability, cleanup costs, and third-party claims that may arise from leaks, spills, or other tank-related incidents.
Due to the potential risks associated with tank operations, including legal and regulatory compliance related to spills and environmental management, this insurance solution is a vital investment to safeguard your business.
Who Needs It
This insurance is essential for a wide range of businesses and property owners, including:
- Gas stations and fuel distributors
- Commercial property owners with tanks onsite
- Manufacturing and industrial facilities
- Farms and agricultural operations
- Contractors working with tank installations or removals
Even if your business follows best practices, accidents or aging infrastructure can lead to costly environmental damage. This program helps manage those risks.
What It Typically Covers
The Towns/EnviroGuard Storage Tank Program usually includes:
- Cleanup costs for spills or leaks from covered tanks
- Third-party bodily injury or property damage claims
- Legal defense costs related to covered incidents
- Regulatory-required corrective action
Coverage may also extend to both scheduled and newly acquired tanks, depending on the policy terms.
Common Exclusions and Limitations
While coverage can be broad, there are typical exclusions you should be aware of, such as:
- Intentional acts or negligence
- Pre-existing contamination
- Unregistered or improperly maintained tanks
- Fines, penalties, or punitive damages
Always review your policy to understand what is and isn’t covered.
Factors That Influence Cost
Several factors can affect the cost of storage tank insurance, including:
- Type, size, and number of tanks
- Tank age and maintenance history
- Location and environmental risk profile
- Business operations and spill prevention measures
Insurers may also consider claims history and compliance with local and federal regulations.
Proof of Insurance and Compliance
Many state and federal regulations require proof of financial responsibility for storage tanks. Having a valid insurance policy through the Towns/EnviroGuard Program may help meet these requirements. Be sure to check with your state’s environmental agency for specific compliance rules.
How to Get a Quote
To explore your options and get a customized quote for the Towns/EnviroGuard Storage Tank Program, click here.
Frequently Asked Questions
Is this coverage required by law?
Some states mandate financial assurance for tank owners, and insurance like this may fulfill that requirement. Check with your state agency for specific rules.
Does it cover both underground and aboveground tanks?
Yes, the program typically offers coverage for both types, though eligibility and terms may vary by tank type and condition.
Can I add new tanks to my policy?
Many policies allow you to add newly acquired tanks, but you must notify your insurer promptly to ensure coverage applies.
What happens if there's a leak but no property damage?
Cleanup costs may still be covered, even if no third-party damage occurs, depending on your policy terms.
Will a prior spill affect my eligibility?
Past incidents may influence underwriting decisions, but coverage might still be available depending on the situation and remediation efforts.
Still have questions? Talk to a local insurance expert.