Annual aggregate assurance

Definition

The federal yearly cover for fuel tank leaks, which rises to $2 million once one owner passes 100 tanks.

Why It Matters

Underground storage tanks asks each site for its financial responsibility coverage. This is the total the owner must carry across every site, and it moves with the count. The federal rule sets an annual aggregate of $1 million for an owner of 1 to 100 petroleum tanks and $2 million for 101 or more. The rule counts each single containment unit as a tank and never a combination of them, so ask how the seller's coverage counted a compartmented tank. The owner must review the aggregate whenever tanks are acquired or installed, and reach $2 million by the next anniversary of its current mechanism. Per occurrence, a fuel retailer needs $1 million at any size. At four tanks a station, the 101st tank arrives with the twenty-sixth station, which is the deal where the cover behind every site gets repriced. Legal defense costs sit outside these amounts, and the rule says the amounts do not limit the owner's liability at all.