What type of insurance is necessary for a property with several underground storage tanks storing fuel oil?

Pollution liability insurance is specifically designed to cover the unique risks associated with environmental damage, particularly from hazardous materials, such as those stored in underground storage tanks (USTs). In the context of a property that has several USTs storing fuel oil, the risk of leaks or spills is a significant concern, as these could lead to soil and groundwater contamination, resulting in legal claims, clean-up costs, and regulatory fines.

General liability insurance typically covers bodily injury and property damage, but it does not specifically address the risks associated with pollution events. Property insurance protects the physical structures and their contents but also does not encompass environmental liabilities. Workers' compensation insurance covers employees who are injured on the job, but it does not address environmental claims stemming from pollution incidents.

Thus, pollution liability insurance is essential for properties with underground storage tanks, as it provides the necessary coverage for potential costs associated with environmental damage and the liabilities that could arise from it.