TANK INSTALLER'S INDEMNIFICATION PROGRAM

The purpose of TIIP is to provide liability coverage for certified companies and certified tank installers who are registered with the Department of Environmental Protection (DEP). In the event a negligent tank handling activity results in a release, the Fund will indemnify and pay all damages up to $1,500,000 on behalf of the certified company/installer.

The TIIP was created after discussions with a stakeholders group during the summer of 1996. At that time, these stakeholders recommended that certified tank installers receive coverage under the USTIF for losses resulting from releases that were caused by their activities. Currently all releases from regulated underground storage tanks are covered by the Underground Storage Tank Indemnification Fund (USTIF). The Fund in turn takes action to collect from the tank installers when negligent activity caused the release.

The TIIP Program is administered by the Department of Insurance, through the Underground Storage Tank Indemnification Fund. The USTIF can be reached at the following mailing address, phone number and e-mail address:

Tank Installers' Indemnification Program
901 North 7th Street
Harrisburg, PA 17102-1414
(717) 787-0763 or (800) 595-9887 (PA only)

The Underground Storage Tank Indemnification Board is responsible for establishing fees to be charged to certified tank installer companies for the TIIP. The activity fees are calculated from activities reported to the Department of Environmental Protection (DEP). The fees are identified below:

Certified Company fee: $1,000 annually
Activity fee: (For each tank system activity performed).

The law that creates the TIIP requires the Board to perform an actuarial review to estimate the total liabilities that they will incur for the TIIP. Based on this study, the Board recommended fees to finance these liabilities to ensure that the TIIP can respond to releases caused by certified tank installers under this program.

The TIIP Collections Unit within the Underground Storage Tank Indemnification Fund will collect the fees. The company fee and activity fees will be billed directly to the certified company based upon information maintained by the Department of Environmental Protection (DEP). The certified companies will be allowed to pay the certified company fee in monthly installments or in full, whichever they choose. Activity fees are to be paid in full the month the company is invoiced.

To file a claim, the certified tank installer must contact the Claims Unit after being put on notice of a potential claim by calling (717) 787-0763 or (800) 595-9887 (in PA). An adjuster will then contact the certified tank installer the same or following business day to begin the investigation. Claims must be reported within 60 days after knowledge of a potential claim or coverage will be denied.

To be eligible for claim benefits, you must meet the following requirements:

• The claimant is a certified tank installer who is employed by a certified company and performed the work that gave rise to a claim for a certified company.
• The Fund's fees are paid.
• The tank is registered with the Pennsylvania Department of Environmental Protection (DEP), unless it is a nonregulated heating oil tank that was opted into the program.
• The certified tank installer has obtained permits, if required.
• The facts indicate that a tank installer was negligent in some tank handling activity resulting in a release after the effective date of the coverage.
• Claims must be reported within 60 days after knowledge of a potential claim or coverage will be denied.

The TIIP is a liability program to protect certified companies in the event that their activity caused a release from a regulated underground storage tank or a nonregulated underground heating oil tank that was opted into the program. The TIIP will respond to eligible participants by paying claims and defending suits resulting from releases.

The TIIP provides up to $1,500,000 per occurrence for corrective action and third party liability as a result of a release from a regulated underground storage tank or a nonregulated underground heating oil tank that was opted into the program. Additionally, there is an annual aggregate limit of $1,500,000 for certified tank installers who perform 100 or fewer installations or major modifications and an annual aggregate limit of $3,000,000 for certified tank installers who perform more than 100 installations or major modifications.

TIIP coverage is effective on or after January 1, 2002, subject to the eligibility requirements.

$5,000 per tank per occurrence.

The TIIP will be primary to all other coverage's that a certified tank installer may maintain. As a result, certified tank installers and certified companies should inquire from their insurance companies if they can receive any premium discounts since the TIIP will be primary.

Under Act 13 of 1998, the TIIP is a mandatory program for all certified companies as determined by DEP who perform any major modifications, installations or removals of regulated underground storage tanks.

The USTIF Program provides owners and operators of regulated underground storage tanks proof of financial responsibility in the event that their tanks would leak into the environment. If a tank owner's release was the result of another person's negligence the Fund would seek recovery from that responsible party. The TIIP will provide liability coverage in the event a certified tank installer was negligent in their tank handling activities.

No. The TIIP only covers regulated tanks located and registered within the Commonwealth of Pennsylvania and those qualified heating oil tanks.

No, except for work done on nonregulated underground heating oil tanks that were opted into the program.

35 P.S. 6021.706 sets forth the eligibility requirements for owners, operators and, as of January 30, 1998, certified tank installers. The statute provides:

In order to receive payment from the Fund, a claimant shall meet the following eligibility requirements:

1. The claimant is the owner, operator or certified tank installer of the tank which is the subject of the claim.
2. The current fee required under 705 has been paid.
3. The tank has been registered in accordance with the requirements of section 503.
4. The owner, operator or certified tank installer has obtained the appropriate permit or certification as required under sections 108, 501 and 504.
5. The claimant demonstrates to the satisfaction of the board that the release that is the subject of the claim occurred after the date established by the board for payment of the fee required by section 705(d).
6. Additional eligibility requirements which the board may adopt by regulation.

In accordance with these eligibility requirements, the certified tank installer would have TIIP coverage in this situation provided he has paid all fees that had been assessed.

In order for the TIIP coverage to apply, the underground heating oil tank must either be registered with the DEP (if a regulated tank) or participating in the opt-in program with the USTIF (if a nonregulated tank). There are approximately 1,600 tanks or 80% of the population participating in the program. If there is any doubt that the tank has opted into the program, you may call the USTIF before beginning any work to confirm the status of USTIF coverage on the tank.