Improper Disposal
Used oil could be considered hazardous or non-hazardous waste, depending on the oil’s chlorine content. Transporting used oil is considered 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 and Unloading
Spills or releases during the loading and unloading of used oil 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.
Wastewater Management
During dewatering, wastewater may contain contaminants such as heavy metals and chemicals. Improper wastewater treatment, storage, and disposal can result in regulatory fines and property damage claims.
Stormwater Run-off
Stormwater run-off could contact chemicals, debris, oil storage areas, wastes, and other outside storage at oil recycling facilities. If stormwater is not properly controlled, contained, or pre-treated before discharge into sanitary or storm drainage systems, it can pollute soil and groundwater or discharge directly into surface waters, impacting human health and aquatic systems.
Storage Tanks
Aboveground and underground storage tanks may be used for oil storage. Improper management and monitoring of aboveground and underground storage tanks and associated equipment can lead to spills and releases. Spills can also occur during the loading or unloading of materials. Underground storage tanks, sumps, piping, and other components may leak over time or fail. Aboveground storage tanks 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 soils and groundwater. Released contaminants may contaminate soil or groundwater, enter drywells or storm drains, migrate to neighboring properties, or degrade natural resources.
Accidental Releases During Transport
Releases may occur during an accident involving a truck transporting used oil via a rollover or upset on a highway or roadway. The release may migrate from 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, triggering third-party claims for property damage or causing injury to individuals, resulting in third-party bodily injury claims.
Environmental Pollution Liability Can Provide Coverage For
Integrated GL/Site Pollution, options to include XS, Auto, and WC may be available
Monoline Site Pollution Liability
Third-party claims for bodily injury and property damage
First-party and third-party cleanup
Defense of third-party claims
Emergency response costs
Natural resource damage
First and third-party transportation pollution liability
Civil fines and penalties, where allowed by state law
Loading and unloading
Products pollution liability
Crisis/reputation management
Off-site services pollution liability
Business interruption expenses
Non-owned disposal sites
Claims Scenarios & Examples
