Question 3: Does this requirement apply to products that were manufactured before January 30, 2008, or to installations/ repairs that were done in the past?
Answer: The requirement does not apply to products or installations. It applies to companies. Many insurance policies provide coverage for leaks or claims that occur today, regardless of when the product was manufactured or the work was done; if you buy insurance today, you may have liability protection for “past work,” but this is not something the State requires.
Question 4: Does this requirement apply to a company who only works on dispensers – i.e., on equipment above the shear valve?
Answer: Such companies are not required to demonstrate that they
have “FR.” NOTE: Companies who only work on dispensers are required to register with the Division of Weights and Measures and must comply with
fire and safety codes and other applicable rules.
Question 5: Does this requirement apply to a tank owner who does repair work on a tank system he does not own?
Answer: Yes.
Question 6: Does this requirement apply to a company who simply sells equipment, but is not the manufacturer or installer?
Answer: No.
Question 7: Does this requirement apply to installation of both AST and UST systems?
Answer: Yes.
Question 8: I understand Missouri is not specifying how long “into the future” my insurance must cover me. But if I install a tank system today, and a leak occurs ten or fifteen years from now, do I still have liability?
Answer: Whether or not you have insurance, you may still be liable for faulty workmanship, and whoever is paying for the cleanup, (i.e., the tank owner or his insurer), may sue you. In some cases, Missouri's statutes of limitations may apply. Also, please note that if your insurance coverage was “occurrence” coverage, the tank owner or his insurer may demand payment from your former insurer, even if you are no longer in business.
Question 9: Will service companies have ready access to a list of manufacturers and/or parts that meet the requirements of SB1020?
Answer: A list of companies who have registered with the Division of Weights and Measures, and who have demonstrated they have “FR,” is posted on the Internet. SB1020 applies to companies, not parts, so no list of parts will be maintained.
Question 10: If a company installs or repairs a tank system and doesn't have insurance, what will you do?
Answer: Please understand that any company whose product or workmanship causes a leak is liable and may be sued, regardless of whether it has FR or has met the requirements of SB1020. The PSTIF has subrogated against various persons and companies whom it believed caused leaks in the past, and will continue to do so, regardless of whether that company or person is subject to or has complied with SB1020.
When the Division of Weights and Measures learns of a company who is doing work and is not properly registered, it will take appropriate enforcement action, which may include fines and/or litigation.
Question 11: What are your plans for assuring that companies comply with this new requirement?
Answer: Missouri is fortunate to have multiple sources of information on who is manufacturing, installing, and repairing tank systems in our state. Three state agencies are cooperating to assure compliance with SB1020.
The Division of Weights and Measures' inspectors know what companies have demonstrated they have FR. When they learn of work being done by a company that is not on the list, the inspectors will notify the Program Administrator, who will take appropriate action.
Underground tank owners are required to notify the Department of Natural Resources of new installations. The DNR's installation notice form will be revised to require the owner to identify who is doing his installation.
The Petroleum Storage Tank Insurance Fund receives hundreds of records documenting equipment replacement and repairs annually, and will be checking to make sure the companies doing this work are properly registered.
Inspectors working for the PSTIF and the DNR will also have this list and will be watching to assure that repairs are done by properly registered companies.
Finally, we believe that reputable companies who provide these services will help police this by reporting unregistered companies doing work in their market area.
Question 12: Will tank owners/operators be informed of these new requirements?
Answer: Yes. Tank owners/operators have been informed that service companies must be registered with the Division of Weights and Measures, and have ready access to the list of registered companies. All three state agencies will routinely inform tank owners that they must use properly registered companies for installations and repairs.
Question 13: Do you require that the insurer be of a certain size or have a certain rating?
Answer: No.
Question 14: Will you allow manufacturers to have a large deductible – say, $150,000?
Answer: Yes.
Question 15: What happens if a contractor goes out of business and quits renewing his insurance?
Answer: He will no longer have to meet the requirements of SB1020.
Question 16: Will the insurance policies you are requiring cover the cost of replacing defective equipment, or the cost of redoing the installation or repair?
Answer: Some insurance policies provide this, but it is not required by SB1020.
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