Owners and operators of
regulated underground
storage tanks (USTs) on tribal
lands must comply with
federal UST regulations.
This compliance assistance
brochure highlights best
management practices for
demonstrating financial
responsibility through
insurance.
Note: This document is a
resource to promote
compliance and does not
replace the federal UST
regulations.
EPA developed this
brochure to help UST
owners and operators in
Indian country comply with
the federal UST regulations.
This brochure is one in a
series of EPA compliance
assistance brochures
designed to help owners and
operators comply with UST
regulations.
Other brochures focus on
implementation, compatibility,
spill buckets, overfill
protection, recordkeeping and
notification, financial
responsibility, and tank and
piping release detection.
Inspect
oEPA
Office of Underground Storage Tanks
www.epa.gov/ust
July 2018
EPA-510-F-18-002
Compliance Assistance In
Indian Country

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FINANCIAL RESPONSIBILITY:
INSURANCE
Owners and operators of regulated underground
storage tanks (USTs) are required to maintain
financial responsibility. There are several
mechanisms to demonstrate financial responsibility.
(FR). This brochure focuses on insurance.
What is financial responsibility?
If you own or operate a regulated UST, you must
ensure money is available to pay for cleanup costs,
bodily injury, and property damages resulting from
releases. FR is required for all regulated USTs.
How can you demonstrate FR?
Tribal or private owners and operators can:
Obtain insurance;
Use a state fund;
Self-insure;
Obtain a corporate guarantee, surety bond, or
letter of credit; or
Use a trust fund administered by a
third party

Tribal governments can:
Use a local government bond
rating test;
Use a local government financial test;
Obtain a local government guarantee; or
Use a dedicated local government fund .
How can you purchase insurance?
You can obtain pollution liability insurance policy
from a licensed insurer or risk retention group. The
policy must promise payment for cleanup and third-
party liability claims. Your insurance may be in the
form of a separate policy or an endorsement to an
existing policy.
You will have to make choices on what type of
policy to purchase. Differences in policy terms will
affect the cost of the policy and what it covers.
For a summary of UST owners' and operators' financial re-
sponsibilities under federal UST regulations, see EPA's
Dollars and Sense: Financial Responsibility Requirements for
Underground Storage Tanks You may also order free cop-
ies by calling (800) 490-9198.
What are the basic parts of an insurance
policy?
The declarations page provides the coverage
summary. The type, size, and location of the
covered USTs should be listed on the
declarations page (or as an endorsement).
Make sure that your UST information is
correctly listed.
The insuring agreement describes what is
covered under the policy, which includes:
*	Definitions of the policy terms.
Review what is defined as a pollution
condition or a release;
*	Exclusions of what is not covered; and
*	Policy conditions that you must meet in
the event of a claim or policy cancellation.
Endorsements or amendments are provisions
that modify the conditions of the original
insuring agreement. All policies must have an
endorsement with the required wording that
can be found on pages 9-10 in EPA's Dollars
And Sense. Keep this document with your
policy.
Before purchasing a policy read it carefully.
Discuss the policy with your agent or broker to
make sure you understand your responsibilities,
should a release occur from your UST.
How much insurance do you need?
The amount of coverage needed depends on :
Type of business you operate;
Amount of throughput of your tank;
Number of tanks you have.
Type Of UST
Owner And
Operator
Per Occurrence
Coverage
Aggregate
Coverage
Petroleum
producers,
refiners, or
marketers
$1 million
$1 million for
100 or fewer
Nonmarketers
$500,000 - monthly
throughput 10,000
gallons or less
or
$1 million - monthly
throughput is more
than 10,000 gallons
tanks
or
$2 million for
more than 100
tanks
What should you ask when purchasing an
insurance policy?
The answers to the questions below are very
important, to ensure your insurance pays for a
release from your tank.
Is this a confirmed or suspected release policy?
What is the company's policy on excluding tanks
over certain ages?
Can a retroactive date be carried from a
previous or existing policy (for claims-made
policies)?
What are your reporting responsibilities should a
release occur?
You should ask your agent or broker:
Does the agent or broker have experience in
issuing UST policies or know the federal UST
regulations?
Who has the insurer provided with this type of
policy and can they provide you with names of
clients?
Insurance policies must:
Provide a separate limit of coverage for legal
defense costs;
Provide first dollar coverage and a six month
extended reporting period for claims-made
policies; and
Include an endorsement or certificate that
becomes part of the policy stating coverage
amount, coverage purpose, and conditions .
What records should you keep?
Maintain an updated certification of insurance that is
signed by you and a witness or notary. The required
wording can be found on pagesl 1 -12 in EPA's Dollars
And Sense: Financial Responsibility Requirements for
Underground Storage Tanks
Maintain any additional documentation that shows
your insurance coverage is valid and provides
details on the coverage.
Keep these records on-site or readily available upon
request until the site is permanently closed.
For a list of insurance providers who may be able to help you
comply with FR see EPA's List Of Known Insurance
Providers For Underground Storage Tank Owners And
Operators. You may also order free copies by calling (800)
490-9198.

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