At a glance
- Who it’s for
- Grease trap, septic, liquid waste and hazmat haulers.
- Coverage most liquid waste & hazmat operators carry
Hazmat refers to hazardous material. Grease trap and liquid waste are commonly called FOG (fat, oil, and grease) in the industry. Insurance needs are similar to those for other truckers, though extra high limits for pollution coverage is recommended and in some cases is mandatory.
Hazardous Material
To haul hazardous material or FOG, haulers must have proper equipment and permits. Trucks of various sizes are used to haul FOG, from super-duty pickups to larger vehicles with tanks of 4,000-gallon or greater capacity. Hazardous material is hauled in many types of trucks and tanks, depending on the substance. Hazardous material includes:
- petroleum products
- propane and other combustible gases
- dynamite
- cleaning compounds
- adhesives
- paint
- many types of chemicals
- fertilizers
- contaminated soil
Coverage
Leaking or ruptured tanks can pollute waterways, explosions can cause great damage and death, and ongoing pollution problems can result, so high limits on pollution and liability coverage are mandatory. In addition to the usual coverage recommended for truckers:
- Broadened Pollution Liability
Higher limits to cover damages caused by accidental discharge of the hazardous material; in some cases there is a legal minimum of as much as $5 million; coverage should include loading and unloading, in transit, clean-up, and ongoing contamination
- Umbrella insurance
Umbrella insurance provides coverage limits beyond what are provided by your primary coverage, including your liability coverage, and also provides coverage for occurrences that are not covered by your primary coverage. Note here the difference between excess insurance and umbrella insurance: excess insurance provides higher limits but only covers whatever is covered by your primary coverage; umbrella provides higher limits and broader coverage. As your primary insurance is likely to offer coverage under $10 million, and might have exclusions that limit coverage to certain occurrences, an umbrella policy that both broadens coverage and offers a limit in the tens of millions of dollars is recommended.
