Tank Installers' Indemnification Program (TIIP)

What is the purpose of the Tank Installers' Indemnification Program (TIIP)?  back to top

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.

Why was TIIP created?  back to top

The TIIP was created after discussions with a stake holders group during the summer of 1996. At that time, these stake holders 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.

Who administers the TIIP?  back to top

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:

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

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.

How will the fees be collected?  back to top

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 these fees in monthly installments or in full, whichever they choose.

How do I make a claim to the TIIP? back to top

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) or e-mail:  ra-ustif@pa.gov.  Claims must be reported within 60 days after knowledge of a potential claim or coverage will be denied.

When is a certified tank installer eligible? back to top

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

• Claims must be reported within 60 days after knowledge of a potential claim or coverage will be denied.
• 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 Department of Environmental Protection (DEP) unless it is a heating oil tank that opted in to 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.

What coverage do I receive under TIIP? back to top

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 qualified heating oil tank. The TIIP will respond by paying all claims resulting from this release and defend all suits resulting from this release.

What are the coverage limits?  back to top

The TIIP provides up to $1,500,000 per tank per occurrence for third party liability as a result of a release from a regulated underground storage tank or qualified heating oil tank.

When will coverage start?  back to top

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

What is the deductible for this Program? back to top

$5,000 per tank per occurrence.
 

How does this impact my commercial insurance? back to top

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.

If I have private insurance, do I need to participate in TIIP? back to top

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.

If the tanks are covered, why do I have to be covered? back to top

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.

Does coverage include work I do outside of PA? back to top

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

Does coverage include work done on unregulated tanks? back to top

No, except for work done on qualified heating oil tanks.