Property Types

Fuel Docks

Fuel dock operations involve delivering, storing, and dispensing fuel to vessels at marinas, docks, and waterfront facilities. These operations typically include transferring gasoline, diesel, and other fuels into boat tanks, requiring strict adherence to safety protocols to prevent spills, leaks, and accidents. Environmental exposures at fuel docks include the risk of fuel spills into the water, vapor emissions from fuel pumps, and the potential for fuel run-off during stormwater events. Boat maintenance activities can pose several additional environmental exposures. The storage, use, and disposal of hazardous materials can result in leaks or spills that contaminate soil, groundwater, and surface water. Proper containment systems, spill response plans, regular equipment maintenance, and adherence to environmental regulations are crucial for minimizing the environmental impact of fuel dock operations.

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Environmental Exposures May Include:

Fuel Releases
Stormwater Run-off
Illicit Abandonment
Mold
Chemical Storage
Oil Spills
Storage Tanks

Fuel Releases

Fuel releases can contaminate surface water and groundwater and pose a fire safety risk. Releases can occur from several circumstances, including overfilling boats, leaking pipes or hoses from tanks and fueling dispensers, or during fuel loading from a delivery vehicle to a fuel tank.

Stormwater Run-off

Stormwater run-off can be contaminated by many sources within the fuel dock facility, including fuel or oil from storage tank leaks, uncovered areas where hazardous materials are stored, and boat maintenance activities. Failure to provide appropriate containment measures can cause polluted run-off to enter stormwater drains or go directly into water bodies.

Illicit Abandonment

Illegal dumping of pollutants on fuel dock properties, referred to as illicit abandonment, can lead to a costly investigation, cleanup, and waste disposal. If law enforcement cannot locate the originator of the waste, it can become the property owner’s burden for cleanup and third-party bodily injury or property damage.

Mold

Due to the wet conditions at fuel dock locations, buildings can be susceptible to flooding, water intrusion, or excess humidity. Mold could develop in these buildings, causing cleanup liability, third-party bodily injury, and property damage claims.

Chemical Storage

Chemicals used in fuel dock maintenance operations may include paints, solvents, cleaners, oils, and maintenance fluids. Storage areas are potential sources of accidental releases from container breaches, leaks, and spills. Releasing these chemicals can lead to pollution events and increase the severity of fires. Oil changes performed on the slip or dockside can release oils and greases into the marina basin.

Oil Spills

Fuel delivery by tanker boats has the potential for oil spills. These spills can occur during transfer, fueling operations, or tanker accidents. Oil spills can damage marine ecosystems, harm wildlife, and cause long-term environmental degradation. Inadequate sealing, poor maintenance, or human error during the fueling process can result in fuel leaks, which directly contaminate the water. If fuel spills occur during the transfer process and the tanker boat is near the shore, the fuel may wash up on beaches or contaminate soil along the coastline.

Storage Tanks

Underground or aboveground storage tanks (UST/AST) can store fuel, oil, waste oil, and wastewater. Accidental releases from tanks can occur suddenly or gradually over time, contaminate soil, groundwater, and surface waters, and lead to costly investigations and cleanups. Fumes or vapors from ASTs/USTs can also lead to bodily injury claims from third parties.

Environmental Liability Can Provide Coverage For

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

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

Civil fines and penalties

Natural resource damage

First-party emergency response cost

Business interruption resulting from pollution conditions

Aboveground and underground storage tanks

First and third-party transportation pollution liability

Loading and unloading

Mold, legionella, bacteria, and fungi

Non-owned disposal sites

Illicit abandonment

Claims Scenarios & Examples

After receiving several complaints from boaters about leaking fuel, the EPA shut down a marina’s fueling dock. After investigating further, they found that the line hookups in the fueling system were faulty. The marina faced large government fines and was responsible for cleanup costs that exceeded $500,000.
A fuel line at a fueling dock failed, spilling four hundred gallons of gasoline into the bay. Several geese were injured by the exposure to the gasoline and received care. No people were injured, but the fuel dock was closed for a few days. Booms were deployed to contain the spill, and cleanup ensued. The fuel dock was found liable for the cleanup and the care given to the injured wildlife.
A fuel dock was found to violate the Clean Water Act by discharging stormwater without a proper permit. Small leaks from the oil storage area polluted the stormwater. The fuel dock was also found to be discharging process water from boat washing, which contained speckles of paint that polluted the water and were a danger to marine life. Until the settlement was reached, the fuel dock faced fines of up to $37,500 a day.
A marina’s chemical storage area caught on fire, and more than 20 nearby businesses had to evacuate due to the fumes of the hazardous chemical fire. The shutdown of the area remained in effect for several days while the fire was put out and the chemicals cleaned up. Several businesses sued the marina for business interruption, property damage, cleanup costs, and third-party bodily injury. The settlement of all the claims surpassed $30 million.
A fuel dock company and its operator have settled a lawsuit by paying a $2.38 million environmental mitigation payment. The dock is on a fishing pier, serving as a public water access point. Residents reported seeing waste being dumped into the marina, resulting in the pollution that prompted the lawsuit.
The owner of a fuel dock was fined $100,000 for failing to properly notify the state following an incident where their employees accidentally severed a fuel line while repairing the dock after an alcohol-related boating accident. Despite the repair being faulty, the dock continued to dispense fuel. This negligence interfered with an environmental protection investigation, resulting in the fine.

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.

Disclaimer

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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