Freberg, ZCL Target Florida with Underground Storage Tank Insurance

ZCL Composites Inc., an underground fiberglass tank manufacturer, has partnered with Freberg Environmental Insurance of Denver to offer Prezerver, a non-cancellable, 10-year underground storage tank insurance policy for ZCL’s U.S. customers.

The program will be administered by Willis HRH. Canada-based ZCL operates in the U.S. through its wholly owned subsidiary, Xerxes Corp., which it acquired in February 2007.

The Prezerver policy is available to owners of ZCL underground storage tanks anywhere in the U.S., but the new policy particularly helps gas station owners dealing with what is a potential insurance crisis in Florida.

Florida’s Department of Environmental Protection has mandated that all existing single-wall tanks be upgraded to secondary containment by Dec. 31, 2009. Potentially thousands of Florida service station and convenience store owners who have not yet upgraded their existing single-wall fuel storage tanks to secondary containment may soon be forced to cease operations.

In addition, those who have not completed this required upgrade are experiencing cancellation or non-renewal of their liability insurance policies. For many station owners, these liability insurance policies are required for them to meet federal and state financial responsibility requirements, and therefore to remain in business.

The Prezerver insurance offer follows ZCL’s introduction into the U.S. market last year of its Prezerver double-wall storage tanks manufactured with Parabeam, ZCL’s patented, three-dimensional glass fiber material.

“This advanced design makes it possible to do what was previously thought to be impossible, allowing us to offer a 10-year, non-cancellable policy for a one-time fixed premium,” says the Denver-based underwriter for the program, Stacy Brown, president and managing partner of Freberg Environmental Insurance.

The Prezerver insurance policy also is available for U.S. customers of ZCL’s patented Phoenix System, an in-situ installed secondary containment system.

Freberg’s Brown said Prezerver includes third-party liability, first-party clean-up and physical damage coverages.

ZCL introduced double-wall fiberglass tanks using Parabeam in Canada in 1989 and created the Prezerver insurance policy there in 1996. The companies ay there has never been a substantiated claim against the Prezerver policy in Canada.

For U.S. customers, the one-time premium feature of the Preserver insurance policy eliminates annual renewals, thereby avoiding the likelihood of premium rate increases as tanks age. The Prezerver policy is transferable to a new site owner and lenders can be added as additional insureds.

Prezerver is underwritten in the U.S. by Endurance American Specialty Insurance Co., rated A by the rating agency A.M. Best Co. The coverage was arranged by Willis HRH through Freberg Environmental Insurance.

The U.S. coverage offered under Prezerver provides many advantages over alternative financial assurance mechanisms, according to the firms. Unlike most state funds, Prezerver also provides coverage for equipment repair and replacement costs. Further, the Prezerver policy pays on the owner’s behalf as clean-up expenses are incurred, while state funds typically reimburse only after remediation and repair costs have been paid by the site owner.

Sources:
ZCL Composites Inc.
www.zcl.com

Freberg Environmental Insurance
www.willis.com

Topics Florida USA Pollution Canada