What is UST/AST Contractors Umbrella / Excess Liability?
UST (Underground Storage Tank) and AST (Aboveground Storage Tank) contractors often face a unique set of risks due to the nature of their work. Umbrella or excess liability insurance provides an added layer of protection by extending the limits of underlying liability policies such as general liability, auto liability, and workers’ compensation. This coverage is designed to help protect against large or catastrophic liability claims that exceed the limits of standard policies.
Who Needs It
Contractors involved in the installation, maintenance, or removal of USTs and ASTs should consider umbrella or excess liability coverage. This includes:
- Petroleum contractors
- Environmental remediation companies
- Tank installation and removal specialists
- Hazardous material cleanup crews
These professionals often work in high-risk environments where liability claims can be significant. Umbrella coverage helps ensure they have sufficient protection beyond their basic insurance limits.
What It Typically Covers
Umbrella or excess liability insurance typically provides coverage for:
- Third-party bodily injury and property damage
- Legal defense costs
- Claims that exceed the limits of general liability, auto liability, and employer's liability policies
This coverage activates only after the limits of the underlying policies have been exhausted.
Common Exclusions and Limitations
Like all insurance, umbrella policies have exclusions. Common exclusions may include:
- Intentional acts or willful misconduct
- Pollution-related incidents not covered by underlying policies
- Professional errors and omissions
- Contractual liabilities not assumed under the underlying policies
Always review your policy details to understand what is and isn’t covered.
Factors That Influence Cost
Several factors can affect the cost of umbrella or excess liability insurance for UST/AST contractors, including:
- Business size and annual revenue
- Type and scope of operations
- Claims history and safety record
- Coverage limits requested
- Underlying policy coverage and limits
Proof of Insurance and Compliance
Many clients, municipalities, and regulatory agencies require proof of umbrella or excess liability coverage. Certificates of insurance can be used to demonstrate compliance with contract or regulatory requirements. Requirements for UST/AST contractors vary by state, so it's important to stay informed about local regulations and maintain appropriate documentation.
How to Get a Quote
To find the right umbrella or excess liability coverage for your UST/AST contracting business, it's best to work with an insurer that understands the risks specific to your industry. Get a customized quote today to explore your coverage options.
Related Coverages
Frequently Asked Questions
What is the difference between umbrella and excess liability coverage?
Umbrella insurance may provide broader coverage and can sometimes fill gaps in underlying policies. Excess liability simply extends the limits of existing coverage without adding new protections.
Does umbrella insurance cover pollution claims?
Only if the underlying policy includes pollution coverage. Otherwise, you may need a separate environmental liability policy.
Is umbrella insurance required by law for UST/AST contractors?
No, but clients or government agencies may require it as part of contract or permitting conditions.
Can umbrella coverage help with legal defense costs?
Yes, it typically includes legal defense costs if the claim exceeds the limits of the underlying policy.
Do I need umbrella coverage if I already have general liability insurance?
Yes, if your work involves high-value risks or contracts. Umbrella insurance adds extra protection beyond your general liability limits.
Still have questions? Talk to a local insurance expert.