Insurance a Must When Storing Flammable Material
If your business involves the storage of flammable/explosive material—even if you’re only storing gasoline for use in company vehicles—it’s essential to obtain the insurance coverage you need to protect yourself from damages in case of an event. Here are guidelines to help you navigate the tricky waters involved in storing hazardous material:
Pollution Liability: If you store any potentially hazardous material, including gasoline, you may be required to have pollution liability insurance to protect you should the material leak into a water source or cause a fire or explosion. Cleanup from these events is extremely costly, as are other liability costs, including injuries or death.
Fireworks Insurance: The storage of pyrotechnics involves myriad regulations. For insurance purposes, general liability insurance will typically cover fireworks storage. However, because of the many classifications and requirements around the storage of fireworks, it’s important to check with your agent to ensure your liability limits are sufficient.
Storage of fireworks is also regulated by the Department of Alcohol, Tobacco and Firearms; the Department of Transportation; and the Consumer Product Safety Commission. It’s vital you are in compliance with regulations from all these agencies. The National Fireworks Association and your insurance agent can give you more information.
It’s important to realize that many products are considered hazardous materials, and you will need the appropriate insurance if you store them. Your insurance advisor will help ensure your limits are appropriate to your business and the policy based on the type, amount, and potential hazards of the material stored.