Property Types

Convenience Stores

Convenience stores may have fueling stations, restaurants, and grocery services. These operations can face many environmental exposures. Releases of pollutants from fueling systems can contaminate soil, groundwater, or surface waters, resulting in claims for on-site or off-site bodily injury, property damage, cleanup, or natural resource damage. Environmental liability can also result from the illicit abandonment of wastes on a convenience store site, mold incidents, or the accidental disturbance of asbestos-containing materials or lead-based paint. Transportation of products or wastes and off-site waste disposal also create pollution liability exposures for convenience store owners and operators.

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Environmental Exposures May Include:

Storage Tanks
Spills
Waste Management
Water Intrusion and Mold
Cargo Securement and Accidental Releases
Illicit Abandonment
Flammables
Toxic Vapors
Grease Trap Failures
Refrigerants
Asbestos and Lead

Storage Tanks

Aboveground storage tanks (ASTs) and underground storage tanks (USTs) may be used to store petroleum products. Improper management or monitoring of ASTs, USTs, and associated equipment can lead to spills and releases. Spills can also occur during the loading or unloading of materials. USTs, dispensers, sumps, piping, and other components may leak over time or fail suddenly. ASTs have the potential to experience leaks from tank bottoms or ruptures. Damage, cracks, or overflow of secondary containment, or inadequate secondary containment, can allow leaked contents to leach into the underlying soil and groundwater. Released contaminants may contaminate soil or groundwater, enter drywells or storm drains, migrate to neighboring properties, or degrade natural resources.

Spills

Fluids, such as motor oil, hydraulic fluid, gasoline, or diesel fuel, can leak from vehicles being fueled or accidental spills and leaks from nozzles. Releases of these fluids can lead to soil and groundwater contamination or migrate and enter drywells or storm drains. Releases to surface water may cause damage to natural resources such as fish, wildlife, and biota, and it may also harm local drinking water sources.

Waste Management

Convenience stores may generate wastes, such as oil-contaminated spill absorbents or oily water, from testing or cleaning out UST system components. Wastes must be properly characterized, transported, and disposed of at facilities that accept the material. Waste generators retain “cradle to grave” liability for waste disposal and could become liable for pollution conditions at non-owned disposal sites (NODS).

Water Intrusion and Mold

Storms, flooding, roof and window leaks, and leaks from water pipes, sprinklers, and HVAC systems can lead to water intrusion into building materials and mold growth. Additionally, mold can develop within HVAC systems or from improper building ventilation or humidity management. Mold incidents can lead to third-party bodily injury, property damage, or cleanup claims.

Cargo Securement and Accidental Releases

Transportation of fuels, products, and wastes to or from a convenience store may be with the owner’s fleet vehicles or by third-party carriers. A release of these materials while on the road due to accidents or improper cargo securement or during loading and unloading operations can lead to environmental liability for third-party bodily injury and property damage and cleanup costs.

Illicit Abandonment

Illicit abandonment is the illegal dumping of pollutants on a property by a third party. It can become the property owner’s burden for cleanup and third-party bodily injury or property damage claims if law enforcement cannot locate the originator of the waste.

Flammables

Flammable materials are stored at fueling stations. A fire can be sparked at a gas station, releasing potentially hazardous toxins into the air. Firefighting solutions such as water and foam could create contaminated run-off that spreads to nearby storm drains or other properties, resulting in environmental cleanup and tort liability.

Toxic Vapors

Vapor recovery systems at gasoline service stations are designed to capture up to 95% of the vapors and recycle them into fuel storage tanks. Poorly ventilated or faulty systems can result in third-party exposure to unhealthy levels of carbon monoxide and toxic fumes.

Grease Trap Failures

Convenience stores, fast food, and restaurant services may have grease traps and interceptors, which must be properly sized, installed, and maintained. Improper maintenance or containment of grease waste can result in a release that could contaminate adjacent properties or enter a drainage system. Storm drains may discharge to surface waters. Grease that enters sewer and storm drains can also impair the proper functioning of the drain and result in a buildup of poisonous hydrogen sulfide gas or a sewage backup spill.

Refrigerants

Refrigeration systems, chillers, and walk-in coolers may be present at convenience stores and use chemicals such as ammonia, hydrofluorocarbons (HFCs), or chlorofluorocarbons (CFCs). Releases of these chemicals can cause health hazards to third parties, including respiratory illness and even death.

Asbestos and Lead

Depending on the age of the convenience store structure, asbestos-containing materials (ACM) or lead-based paint (LBP) could be present. ACM could be present in duct insulation, piping, fireproofing insulation, roofing materials, etc. Dust or paint chips containing lead can be generated from disturbance of LBP. Third-party bodily injury or cleanup claims can result from accidental disturbance of these materials.

Environmental Pollution Liability Can Provide Coverage For

On/Off-site cleanup of new and pre-existing pollution conditions

Third-party claims for cleanup costs

Third-party claims for bodily injury and property damage

Both sudden and gradual pollution conditions

Defense of third-party claims

First-party and third-party transportation pollution liability

Non-owned disposal sites (NODS)

Business Interruption expenses resulting from pollution conditions

Loading and unloading

Aboveground and underground storage tanks

Mold, bacteria, legionella, and more

Natural resource damage

Emergency response expenses

Civil fines and punitive damages, where allowed by state law

Illicit abandonment

Claims Scenarios & Examples

An oily sheen was observed on a local stream. It was traced back to a slow leak from an underground storage tank at a nearby convenience store. It was determined that the contamination had impacted the stream for several miles, damaging the aquatic species. The station owner was responsible for the stream’s cleanup and natural resource damage.
The insured was the owner and operator of a gas station with different types of fuel products. When inventory records showed a small decrease in oil over time, they scheduled a pressure test to identify the issue. The test determined that one of the tank’s supply lines was leaking at the connection point. Excavation was done around the area, and fuel was discovered below the joint in the line. Control wells were drilled to help stop the spread of contamination, and the polluted soil was excavated and disposed of properly. The insured’s pollution policy paid for the investigation and cleanup, totaling $335,000.
A malfunctioning pump resulted in a surge of gasoline being ejected into a customer’s face, eyes, clothing, car, and onto the pavement. In addition to the customer experiencing burns to their eyes and face, the spilled gasoline damaged their clothing and car. The customer sued the convenience store owner for bodily injury and property damage. In addition, the convenience store had to retain an emergency response contractor to contain and clean up the spilled gasoline.
After fueling their vehicle, a gas station customer accidentally drove away with the fuel pump nozzle still connected to their car. As a result, fuel was released onto the ground and migrated to the adjacent property. The gas station owner faced cleanup costs for their location and the adjacent property.
A convenience store owner was performing routine tank testing on his fuel system when he discovered a leak from an underground tank supply line. Sampling confirmed that the leak had contaminated the underlying soil, which had to be excavated and properly disposed of. The costs to conduct the investigation, remediation, and disposal costs totaled $368,000.
Two couples sued a gas station for polluting their water wells and allegedly impacting their health and property values. The couples claimed that hazardous chemicals, including benzene and methyl tertiary butyl ether (MTBE), were present at the gas station site and had migrated in groundwater into their wells. They also claimed the chemicals migrated in vapor to impact indoor air in their homes. The State Department of the Environment identified the gas station as the source of the pollution. It required the station to install a carbon-filtration system to reduce chemical levels in the groundwater.
An HVAC system leak occurred over a long period at a convenience store. When employees began complaining of headaches and respiratory issues, an investigation discovered a large mold area in the wall behind the refrigerator cases. An environmental contractor was retained to abate the mold.
A 10,000-gallon diesel aboveground storage tank had a release. Eight thousand gallons of diesel fuel spilled into the secondary containment. Due to a crack in the containment wall, the diesel fuel migrated from the containment area into the underlying soil. The contaminated soil investigation, cleanup, and disposal costs surpassed $320,000.

Final Consideration

Your business can be faced with the cost to defend itself against allegations or legal action from pollution related events, regardless if you are fault or not. Having the proper insurance coverage in place will help fund the expenses incurred to investigate or defend against a claim or suit and provide you with environmental claims handling expertise.

This environmental risk overview offers a general understanding of potential risks and may not reflect all risks associated with your business. Environmental Risk Professionals has compiled this overview for informational purposes only. This overview does not constitute legal opinion or advice, nor does it establish a consultant-client relationship. This overview is not intended to guide project parties in interpreting specific contracts or resolving disputes; such decisions may require consultation with counsel and depend on various factors. © 2025 Environmental Risk Professionals, LLC

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