Insurance: Fuel Spills?

[hibbert6]

I just got a quote from Boat U.S. that had an interesting coverage: $854,400 worth of coverage for "Fuel and other spill liability". None of my other quotes (State Farm, Progressive) include that, and I don't even know if it's available from them. I'm wondering:
1. Has anyone ever heard of someone being liable for a fuel spill? (Besides BP?)
2. Does anyone have this coverage with another company?
3. Would fuel spill liability be covered under regular liability insurance?
4. Any idea where Boat U.S. came up with that number? ($854,000)


Boat U.S. quote was about the same as State Farm, and a bit higher than Progressive, but for lower limits (except that fuel spill thing).

Happy Boating,

Dave

 

[Home Cookin']

Re: Insurance: Fuel Spills?

1. Has anyone ever heard of someone being liable for a fuel spill? (Besides BP?)
Absolutely. Everyone who spills it is liable, and it is a huge issue now, one of the first things they deal with. And since the spill is cleaned up on an emergency basis bu companies supposedly with special skills and special equipment, you pay out the nose--no time to compare bids.

2. Does anyone have this coverage with another company?
many companies offer it, some may include it--see below
some may offer as additional insurance--is your general policy limit greater than or less than $854,000?

3. Would fuel spill liability be covered under regular liability insurance?
The way insurance works, if you have liability insurance, you start with the prospect that any liability is covered--then you read the exclusions and limits.
First, there are dollar limits, either whole policy or specific risks. There may be multiple events limitations.
Then exclusions: intentional acts are not typically covered (you dump your fuel overboard) or criminal--including liability while doing a criminal act (such as racing? driving drunk? driving an unregistered boat?). For some perils, gross negligence may be excluded.
Here's the big one: specific excluded perils. That may be environmental costs.
You have to read YOUR OWN POLICY as all policies are different. When someone posts that they have a certain coverage, it does not mean that you do. And there is about a 50% chance they are right about their own coverage.

 

[lakegeorge]

Re: Insurance: Fuel Spills?

I just got a quote from Boat U.S. that had an interesting coverage: $854,400 worth of coverage for "Fuel and other spill liability". None of my other quotes (State Farm, Progressive) include that, and I don't even know if it's available from them. I'm wondering:
1. Has anyone ever heard of someone being liable for a fuel spill? (Besides BP?)
2. Does anyone have this coverage with another company?
3. Would fuel spill liability be covered under regular liability insurance?
4. Any idea where Boat U.S. came up with that number? ($854,000)


Boat U.S. quote was about the same as State Farm, and a bit higher than Progressive, but for lower limits (except that fuel spill thing).

Happy Boating,

Dave

I left Progressive and went with Boat us. Yes, the fuel spill is worth the coverage, go with the coverage.

 

[greenbush future]

Re: Insurance: Fuel Spills?

They have it defined most likely because the lawyers got involved, and it's up to you to see if it's covered under your general liability or if you need to buy it!
They will take it seriously if you sink your boat with a full tank, however the 6 digit figure you were quoted seems a bit strange, what size boat are you trying to insure? 90% of a fuel spill will evaporate, but the water police will still demand you pay to clean it up. Sounds like a ploy to get more $$ out of you, but that's just my opinion.

 

[dingbat]

Re: Insurance: Fuel Spills?

Federal Water Pollution Control Act (Clean Water Act)​

Because of the harm associated with petroleum, the discharge of oil is absolutely prohibited. The Federal Water Pollution Control Act prohibits the discharge of oil or oily waste into or upon the navigable waters of theUnited States or the waters of the contiguous zone if such discharge causesa film or sheen upon, or discoloration of, the surface of the water, or causes a sludge or emulsion beneath the surface of the water. Violators are subject to a penalty of $5,000.

The United States Coast Guard must be notified any time a spill produces asheen on the water. Call the National Response Center at 1-800-424-8802.Report the location, source, size, color, substance, and time of the spill.Failure to report a spill may result in fines.

The Clean Water Act (33 CFR 153.305) also prohibits the use of soaps or other dispersing agents to dissipate oil on the water or in the bilge without the permission of the Coast Guard. Soaps, emulsifiers, and dispersants cause the petroleum to sinkin the water column and mix with sediments where they will remain for years. Also, the soaps themselves are pollutants. You may be fined up $25,000 per incident for the unauthorized use of soap or other dispersing agents on the water or in the bilge.

These number are just for starters. If something happened and you polluted a Marine santuary or a wildlife refuge, you'll be glad you had a $854,000 policy​

 

[crabby captain john]

Re: Insurance: Fuel Spills?

Figure 2 USCG boats standing by- daily cost will blow your mind. Add 2 contractor boats and the clean up materials, then disposing of those. Don't forget fines the feds will level and the state too if in state waters. DNR will club you for loss of wildlife and damage to the environment. I have a $1 million umbrella policy that can also kick in.......

 

[hibbert6]

Re: Insurance: Fuel Spills?

Figure 2 USCG boats standing by- daily cost will blow your mind. Add 2 contractor boats and the clean up materials, then disposing of those. Don't forget fines the feds will level and the state too if in state waters. DNR will club you for loss of wildlife and damage to the environment. I have a $1 million umbrella policy that can also kick in.......

OK, OK, I'll make sure I have fuel spill coverage!

I'm still baffled about the $854,000 coverage, though. My boat is an 18' bowrider with an outboard. The $854k is not a multiple of any of the other coverages in the Boat U.S. quote. I'll be glad to have that much coverage, but...

Dave

 

[roscoe]

Re: Insurance: Fuel Spills?

insurance will likely NOT cover any fines or penalties from the state or federal authorities.

 

[pikefisherman]

Re: Insurance: Fuel Spills?

So us guys with 5 gal tanks, any advice on insurance for spills?

 

[cr2k]

Re: Insurance: Fuel Spills?

Don't do when anyone is looking!

 

[crabby captain john]

Re: Insurance: Fuel Spills?

Probably NOT,,, but if you are paying for ONLY that huge cost the insurance coverage will be a wonderful thing compared if you were billed for EVERYTHING

insurance will likely NOT cover any fines or penalties from the state or federal authorities.