Fuel Storage Tanks
Fuel storage tanks records whether the insured operates above-ground or underground tanks for fuels such as diesel, heating oil or petrol, as queried in property and environmental liability proposal forms.
- Category
- Hazardous materials
- Data type
- Yes/No
- Risk drivers
- Severity, Accumulation
- Underwriting impact
- Premium, Sublimit, Condition/Warranty
Typical proposal-form questions
- Does the site operate above-ground or underground fuel storage tanks, and for which fuel types and capacities?
- Are tanks double-walled or fitted with secondary containment, and is a leak detection system installed?
- When was the tank last inspected or pressure-tested, and is it registered with the relevant authority where required?
Evidence
- Tank installation permit or registration
- Tank inspection or pressure-test certificate
- Leak detection system documentation
Why it matters for underwriting
Fuel storage tanks combine a fire and explosion hazard with a significant pollution exposure: a tank fire can escalate quickly given the stored fuel volume, while a slow, undetected leak from a corroded or poorly maintained tank can contaminate soil and groundwater long before it is discovered, generating remediation costs that dwarf the value of the fuel itself. Underwriters need to know whether tanks are present, their construction and containment, and their inspection history to price both the property and environmental liability exposure appropriately.
Capturing the attribute and evidence
Proposal forms ask a simple yes/no question on whether above-ground or underground fuel tanks are operated on site, followed by fuel type, capacity, construction (single- or double-walled) and the presence of secondary containment and leak detection. Underwriters corroborate the declaration with the tank’s installation permit or registration, its most recent inspection or pressure-test certificate, and documentation of the leak detection system; underground and older tanks typically prompt closer scrutiny given their higher undetected-leak potential.
Effect on coverage, premium and conditions
Double-walled or well-contained tanks with current inspection certificates and functioning leak detection generally support standard property and environmental liability terms. Single-walled tanks, tanks without secondary containment, or tanks with lapsed inspections commonly trigger premium loadings, environmental impairment sublimits, or conditions requiring containment upgrades, leak detection retrofits, or more frequent inspection; unregistered or clearly non-compliant installations can lead to exclusion of tank-related losses or declinature.
Mitigation measures
Recommended measures include using double-walled tanks or providing secondary containment sized to the full tank capacity, installing continuous leak detection, maintaining a defined inspection and pressure-testing schedule, and ensuring tanks are properly registered and decommissioned in line with applicable regulation when no longer in use.
Standards and codes
- NFPA 30 – Flammable and Combustible Liquids Code