Dealer and Repair

overview | customer profile | coverages | coverage options | limit of capacity | case studies | integration, claims and underwriting | risk management services

The dealer and repair policy provides claims-made coverage for onsite cleanup costs and third-party bodily injury and property cleanup, including defense costs, for releases commencing after the policy retroactive date for scheduled locations and storage tanks. The coverage can be used to meet U.S. EPA Financial Responsibility requirements for regulated storage tanks.

Customer Profile
Our dealer and repair pollution liability coverage is used by a wide variety of customer groups. These different types of businesses include the following:

  • Automobile, equipment, RV and rental car dealers
  • Service stations with repair facilities
  • Oil change facilities
  • Tire and repair shops
  • Vehicle repair businesses


  • Transportation coverage
  • Off-site coverage for scheduled non-owned disposal sites
  • Deductible and “pay-on-behalf” wording
  • Discovery trigger for on-site cleanup
  • Governmental authority definition includes voluntary cleanup programs
  • Mediation deductible credit of up to $25,000 available
  • Primary insurance wording
  • Automatic six-month extended reporting period (ERP) plus optional ERP
  • Coverage for first-party claims during the ERP arising from changes in governmental regulations

Coverage Options
  • Optional coverage enhancements
  • Coverage for off-site repair and maintenance service performed by the insured
  • Coverage for claims resulting from pollution events caused by equipment leasing operations

Limit of Capacity
  • Up to $50 million

Case Studies
Automobile Dealership
Piping associated with a wash bay released a substantial amount of cleaning solvents into soil and groundwater. Subsequent soil and groundwater remediation cost $250,000.

Service Station
A waste hauler hired by a service station carries used motor oil, overturns, and spills its cargo into a stream. As the waste originator, the service station is required to contribute to the cleanup costs. Cost to settle the claim is $600,000.

Body Shop
A solvent recycling facility, used by the insured body shop, is the source of contamination to a downgradient potable aquifier. As the generator of the waste, the body shop is designated a responsible party by local environmental regulatory agency. Contribution to settle the claim is $340,000.

Integration, Claims and Underwriting
The Zurich environmental team realizes that in order to provide you with the best product, we need to work as a cohesive group. Our underwriting staff works closely with our claims and risk management departments to provide you with the foremost coverage available.

The Zurich environmental team understands that in the eyes of our customers, claims handling is probably the most important function we can perform. Therefore, we strive to settle and resolve claims in an intelligent, professional and, where prudent, expedient manner.

our underwriters come from multidisciplined backgrounds and have experience that may lead to anticipating potential problems. This knowledge also allows our underwriters to construct comprehensive coverage programs, which may result in less uncertainty at the time of loss.

Risk Management Services
Our risk management services are tailored to your needs and can include the following:

  • Training and seminars
  • Contract risk management
    • Indemnity and insurance
    • Use of insurance in environmental transactions
    • Lender liability and insurance
    • Government contracts: special issues in the privatization market
  • Contract reviews
  • Claims counseling
  • Risk management and environmental health and safety (EH&S)
  • Policy and program reviews


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Policies are underwritten by the member companies of Zurich North America, including Zurich American Insurance Company
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