As temperatures drop across Massachusetts, many businesses and commercial properties will once again rely on oil heat. While heating oil is common throughout New England, a leaking tank or supply line can cause more than just a loss of heat.

Under Massachusetts environmental laws, property owners can be responsible for addressing oil releases that contaminate their property, soil, groundwater, or neighboring properties. Certain releases must also be reported to the Massachusetts Department of Environmental Protection (MassDEP).

Would Your Insurance Respond?

This is where reviewing your commercial insurance becomes important. Standard Commercial Property and General Liability policies may contain pollution exclusions or limitations, meaning the cost to investigate and clean up an oil release may not be covered as you expect.

Depending on the business, property, and insurance carrier, additional Pollution or Environmental Liability coverage may be available to help address exposures such as:

Cleanup and remediation expenses
Soil or groundwater contamination
Damage to neighboring properties
Third-party bodily injury or property damage claims
Certain environmental investigation and legal expenses

MassDEP notes that heating-oil releases can migrate through the ground, affect groundwater, and spread to neighboring properties—turning what begins as a relatively small leak into a significant environmental issue.

Prevention Matters Too

Massachusetts businesses using oil heat should periodically inspect tanks, piping, and supply lines for corrosion, deterioration, or signs of leakage. Businesses with underground tanks or larger petroleum storage exposures may also be subject to additional state requirements.

Do you have oil heat at your business or commercial property? Contact our Commercial Lines team. We can review your current insurance program, identify potential coverage gaps, and discuss whether you should consider additional pollution or environmental coverage.