Transporters

Petroleum Products

Petroleum transporters are companies or individuals that move materials, such as gasoline, diesel fuel, or used oil, from one location to another by highway, rail, or water. The vehicles involved in this transportation include trucks, railroad cars, boats, and ships. A release of petroleum products could occur during transit and result in environmental contamination. Vehicles may be involved in accidents that cause overturns or rollovers, where the contents of their vehicles are spilled or released into the environment. During loading and unloading, leaks or spills could also occur from containment tanks, lines, and valves. The release of petroleum products may impact and contaminate soil or surface waters and could harm natural resources. Releases can also migrate to third-party properties, resulting in expensive cleanup, remediation, and third-party bodily injury. Discharges of petroleum products could enter storm or sewer drains that may impact the municipal sewer system and contaminate local wells or the city drinking water system.

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Environmental Exposures May Include

Roadway Releases
Toxic Fumes & Fire Risks
Used Oil
Loading & Unloading
Waterway Contamination

Roadway Releases

Releases may occur during an accident involving a truck transporting petroleum products via a rollover or an upset on a highway or roadway. The release may enter the side of the roadway and contaminate the surrounding area. The release may also travel to shallow groundwater or surface water, such as lakes, rivers, streams, or creeks. A release to groundwater could potentially contaminate drinking water sources. Releases may also contaminate nearby properties that, result in third-party claims for property damage or cause injury to individuals that result in third-party bodily injury claims.

Toxic Fumes & Fire Risks

Volatilization of petroleum products following spills during loading or unloading operations could release harmful chemicals into the air causing serious health problems to exposed individuals. It may result in bodily injury claims against the transportation company. Improper handling of petroleum products during loading and unloading onto a truck may result in releases at the jobsite, storage location, or during transit between the site and delivery location. Fires and explosions involving petroleum transporters can result from oil spills during transportation accidents. Petroleum fires burn at extremely high temperatures and could result in bodily injury and property damage.

Used Oil

Used oil could be considered hazardous or non-hazardous waste, depending on the oil’s chlorine content. Transporting used oil is considered to be hazardous waste hauling in certain states. Improper disposal of waste involving petroleum products could require the transporter to recover the waste and pay for any damages and expenses related to remedial action at the disposal facility.

Loading & Unloading

Spills or releases during the loading and unloading of petroleum products from tanker trucks into aboveground or underground storage tanks could contaminate nearby storm drains or drywells. Releases could contaminate the underlying soil and groundwater or be discharged into nearby rivers, lakes, or streams, damaging natural resources and impacting aquatic life.

Waterway Contamination

Releases of petroleum products during shipping caused by structural damage to a tanker ship or collision with another ship have the potential to contaminate surface water bodies, including oceans, rivers, and their tributaries, along with killing sea life, such as fish or birds, and damaging the biota of the waterway.

Transportation Pollution Liability Can Provide Coverage For

First-party and third-party transportation pollution liability

Transportation loading and unloading

Over-the-road pollution coverage may also cover the insured in the event of a fuel or chemical spill from a covered vehicle

Civil fines and penalties, where allowed by law

Third-party claims for cleanup

Third-party claims for property damage

Third-party claims for bodily injury

Defense of third-party claims

First-party emergency response costs

Claims Scenarios & Examples

About 900 claims were filed by motorists who suffered damage to their vehicles after a truck spilled thousands of gallons of liquid asphalt as it leaked from the truck’s bed along 40 miles in the eastbound lanes of a turnpike. The primary insurance carrier for the transportation company stated that their policy had an exclusion for pollution or environmental events, meaning they did not have to cover damages related to the incident. The value of claims filed due to the asphalt spill exceeded $1.7 million.
A waste hauler hired by a service station to carry used motor oil overturned and spilled its cargo into a stream. The spill was reported to the state environmental agency, and an emergency response team cleaned the road. The insured investigated soil and water impact, significant remediation, and future monitoring costs. Remediation efforts were significant, and the total cost was $700,000.
A contractor hauling transformers filled with oil did not properly secure the transformers. One of the transformers accidentally fell during transit, and the oil was released into the ground and the surrounding soil. The investigation and cleanup costs were extensive.
A diesel tanker truck slid off the road, spilling fuel. It contaminated a local spring, the city’s drinking water source, closing several schools and causing officials to enforce a citywide do-not-drink ban for days. The city was forced to temporarily abandon the spring and drill a new well to supplement the city’s drinking water supplies. City officials had to determine the cost of repairing the spring and the necessary and proper course of action. City officials estimated the cleanup effort would cost more than $100,000. The transportation company was held liable for the repairs.
When the operator of a tanker truck attempted to avoid another vehicle, the tanker jack-knifed and overturned. The tanker eventually came to rest on the west side of the roadway, partially down a grass embankment. The tanker carried an estimated 8,500 gallons of fuel that leaked into ditches on the north and south side of the roadway. Once the truck was removed, extensive remediation of contaminated soils was conducted. The trucking firm was found responsible for $110,000 in cleanup and defense costs.

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 at 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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