Environmental liability insurance is becoming more of a mainstream coverage option according to Avsurance, Avfuel Corporation's in-house aviation insurance subsidiary. It is a comprehensive coverage beneficial to fuel handling operations with pollution policies that cover the entire airport, not just at the site of fuel storage tanks, which are typically insured. These coverages protect operations exposed to unforeseen financial responsibility, upward of more than $100,000, and even business interruption for spills or other environmental-related incidents.

“It surprises me how few of our new customers have ever been exposed to the option for environmental liability coverage, especially as we find most airports are beginning to require it,” says Avsurance president Ed Underwood. “It's something Avsurance has offered to all its clientele for some time now, but we continue to hear from prospects and new customers that the option was never mentioned to them before.”

Fuel handlers, such as FBOs and flight departments with their own fuel storage tanks, may therefore not be aware of requirements to have environmental coverage to comply with landlord, vendor, federal or state requirements, or of being responsible for penalties for unmet risk protection. Those who have gone without it for so long may cite its expense as a deterrent. And while rates have increased throughout the insurance industry overall, Underwood notes that has not been the case here.

“Environmental liability is trending opposite of other coverages,” he explains. “While it used to be considered too expensive for most FBOs, the cost is now reasonable, especially considering the cost to not have it.”

Environmental liability includes coverages for premises pollution, product pollution, contractor's pollution liability, renewable and alternative fuel storage, above-ground storage equipment, below-ground storage equipment, over-the-road transport and general liabilities.

“Having this coverage is a critical component of responsible risk management for hazardous materials,” he concludes. “And as environmental initiatives continue to play a larger role in corporate social responsibility goals, we're happy to provide our customers with this offering and educate them on its merit.”