Underground Tank Leak — Gas Station

Industry: Retail Fuel / Gas Station

A gas station owner discovered contamination in nearby residential wells during a routine monitoring event. Investigation revealed a slow leak from a 20-year-old steel delivery piping section. The release had been ongoing for 2–3 years. State regulators required a full site assessment and cleanup.

Claim amount: $485,000

Outcome: The station's UST insurance policy covered corrective action costs: Phase II site assessment ($45,000), soil excavation and disposal ($180,000), groundwater monitoring wells ($55,000), and ongoing groundwater treatment system ($205,000). Three neighboring residents filed third-party claims for well contamination — settled for $62,000, also covered under the policy. Total claim: $547,000.

Lesson: Continuous leak detection monitoring is critical — earlier detection dramatically reduces cleanup costs. The 2–3 year delayed detection transformed what could have been a $50,000 soil-only cleanup into a $500,000+ groundwater remediation project.