Tank Building

Containing Oklahoma’s Precious Elements

Insurance for Tank Building

Tank builders face on-the-job risks from hazardous materials and heavy machinery. We’re proud to help keep boilermakers safer with our top-notch coverage and industry expertise built over 85 years serving the Sooner State.

Get the protection that you need for your team. We’ll help you get coverage that makes sense for the work you do at a fair price. Get a Quote

Interested to learn more? Read on to get answers to common questions and concerns about workers’ comp in the tank building industry.

Types of tanks

In the tank construction industry, a variety of tank types are built. These can include residential tanks, such as fuel oil tanks. Home fuel oil tanks are often Aboveground Storage Tanks or ASTs. Aboveground tanks can be easier to maintain because leaks and damages can be readily observed. 

Tank building also includes underground storage tanks, or USTs. In addition, home fuel oil tanks may also be underground, like water tanks and septic tanks.

Other types of tanks are categorized as industrial. Commercial or industrial tanks may include:

  • Water boilers
  • Chemical vats
  • Gas tanks
 

These types of tanks are widely used today. Uses can include: heating water in homes, storing chemical fluids, and holding compressed gas. Most commercial or residential buildings have tanks or closed vats.

USTs present a unique risk because they are underground. In the 1980s, the federal government passed regulations to help make USTs safer. Older USTs tend to corrode and leak over time—a huge problem due to the nature of what the tanks typically contain (e.g., polluting agents like petroleum) and because the leaks can be undetected for long periods of time. Today, many states have their own regulations regarding insurance for USTs, and offer ways for tank builders and owners to remain compliant with federal laws. There are also many types of insurance for tank building companies that can help mitigate risk for USTs.

Working as a tank builder or boilermaker

Tank builders, also known as boilermakers, must acquire specific skills to complete the complex tasks in their jobs. Although most boilermakers learn their skills on the job or through apprenticeships, many job duties require intensive training. Typical responsibilities of boilermakers include: 

  • Welding
  • Using specialty tools, such as robotic machinery and flame cutters
  • Inspecting tanks and tools for damages or faulty parts
  • Using and installing safety valves, gauges, and boiler controls
  • Understanding complex power or piping systems, such as hydroelectric power systems
 

Boilermaking is dangerous work. Boilermakers handle the hazardous substances that go inside tanks like oil, compressed gas, hot water, and chemicals. Tank builders also take risks when building or maintaining tanks. Boilermakers work inside small, poorly ventilated tanks, sometimes on water towers hundreds of feet in the air. To complete jobs more safely and efficiently, they must closely adhere to safety procedures and wear protective gear. However, accidents are possible, so many tank building companies carry tank building workers’ compensation insurance.

Known risks in Tank Building:
  • Burns
  • Exposure hazards
  • Material handling injuries
  • Motor vehicle accidents
  • Eye damage
  • Falls from heights

Insurance for tank building can be acquired by businesses involved in any aspect of tank building. Utility systems installers employ about one-quarter of all boilermakers, and many others work for contracting companies in building construction and fabrication. Boilermakers working for these companies should be properly protected and insured with tank building workers’ compensation insurance.

Insurance for tank building

There are several categories of tank insurance coverage. One type of insurance covers the tank owners. This category may include homeowners and business owners. Essentially, anyone who has a tank on their property should make sure that their tank is insured, as tanks always present the risk of leaking. Types of insurance for tank owners include:

  • Pollution/spill insurance
  • General liability insurance
  • Business interruption insurance (for business owners)
  • Homeowners insurance (which may cover residential ASTs)
 

If an AST or UST leaks a hazardous substance into the ground, mitigating measures must be taken immediately. The tank owner is financially responsible for cleaning up any spills, especially ones that may contaminate groundwater or have other environmental consequences.

Tank builders may also require other types of insurance that are typical necessities for many businesses, such as health insurance and general liability insurance. One of the most important types of insurance for tank builders is workers’ compensation insurance. Because boilermakers perform dangerous tasks, this type of insurance helps to protect them in the event of a covered on-the-job injury. This type of insurance is mandatory in most states.

There are several workers’ compensation benefits for tank builders. Workers’ compensation can reimburse workers for medical bills, partial missed wages, and disability payments that are incurred as a result of a covered injury. Workers’ compensation disability payments may apply if a worker is rendered temporarily or permanently unable to perform their job due to an injury covered by a work compensation policy. The exact payments depend on the type of injury, its severity, and the workers’ comp disability rating.

This particular type of insurance is good for workers with risky jobs, like boilermakers. A company’s employees can rest assured that if they are injured or become ill on the job or as a result of performing work-related duties, they will be protected. No employee should have to unnecessarily miss work days or go without medical care due to a work-related injury. Having a work compensation policy can go a long way toward improving employee morale and reducing turnover.

Why CompSource Mutual

Finding the right insurance for tank building should be easy. CompSource Mutual’s team is experienced in workers’ comp and employee safety. We can help you protect your workers and meet company and state safety requirements. Request a quote

Check out our safety resources, videos, and checklists for valuable tips on enhancing safety in your workplace.Visit the Safety Training page to learn more.

The U.S. Environmental Protection Agency (EPA) outlines financial responsibility regulations to ensure that underground storage tank (UST) owners and operators can pay the costs of cleaning up leaks from USTs and compensate third parties for bodily injury or property damage resulting from leaks.
Sometimes. A mostly-aboveground storage tank may actually be classified as an underground storage tank (UST). Federal regulations define a UST as a storage tank that is 10% or more below ground. So if a tank is even partially buried, then it will likely be classified as a UST. Entirely aboveground storage tanks (ASTs) may be covered by homeowners insurance. It is important to have storage tank liability insurance for both underground and aboveground storage tanks. This type of insurance covers property damage and injury to any third party as a result of storage tank pollution or harm. Additionally, there are UST regulations in place in which owners must comply with the federal Environmental Protection Agency’s rules and regulations. Other factors, including the location of the tank, the size, and what elements are stored within the tank also contribute to the type of insurance coverage needed and the overall cost.
Pollution liability insurance policies cover claims from third parties against bodily injury and property damage caused by hazardous waste materials released during a company’s business operations. This insurance for tank building covers an employee while they are completing a job, and it also covers their completed operations.
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PAT SMITH
OKLAHOMA CITY, OK

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