I was washing cars in a parking lot. The soapy runoff, mixed with brake dust and oil, flowed into a storm drain. An EPA inspector (or local code enforcement) saw it. They slapped me with a $5,000 fine for “Illicit Discharge.” I called my insurance to pay the fine.
Key Takeaways
- Fines are Uninsurable: Insurance policies generally exclude “Civil Fines and Penalties.” You cannot insure against breaking the law. You have to pay the $5,000.
- Pollution Liability: While it won’t pay the fine, Broadened Pollution Liability coverage would pay for the cleanup costs if the city ordered you to pump out the storm drain (which can cost $20k+).
- Water Containment: In 2026, mobile detailers must use containment mats and reclamation systems in many jurisdictions. Failure to use them is negligence.
- Storm Drain = River: Legally, a storm drain is a direct pipe to local waterways. Dumping wash water there is the same as dumping it in a river.
The “Why” (The Trap): Regulatory Exclusion
Insurance covers Damages (compensation to a victim).
It does not cover Penalties (punishment from the government).
If you get a speeding ticket, Geico doesn’t pay it.
If you get an EPA fine, your GL doesn’t pay it.
The Investigation: “I Called Them”
I asked about EPA fines.
1. General Liability
- Result: Denied. “Fines/Penalties Exclusion.”
2. Pollution Liability (Cleanup)
- Result: If the city sued me for the cost of cleaning the river, the Pollution policy would pay that damages portion. But the $5,000 administrative fine remains mine.
Comparison Table: Runoff Costs
| Cost Item | Insurance Coverage |
| EPA Fine | Denied (Uninsurable) |
| Cleanup of Storm Drain | Covered (If Pollution Liability purchased) |
| Legal Defense against City | Covered (If Pollution Liability purchased) |
| Mat/Reclaim System | N/A (Business Expense) |
Step-by-Step Action Plan
- Buy a Containment Mat: A $300 inflatable mat and a wet vac prevent this entirely.
- Use Rinseless Wash: Switch to ONR (Optimum No Rinse) or similar. No runoff = no fines.
- Know the Code: Check your local municipality’s “Stormwater Management” website. Some allow “biodegradable” soap on grass; most ban everything from storm drains.
- Don’t Argue with Inspectors: If caught, apologize, stop immediately, and demonstrate you have a remediation plan. It might lower the fine.
FAQ
Q: Is biodegradable soap legal to dump?
A: No. It degrades, but the oil and brake dust in the water are the pollutants. The soap isn’t the only issue.
Q: Can I dump it in the toilet?
A: Usually yes. Sanitary sewers (toilets/sinks) go to a treatment plant. Storm drains go to the river.
[IMAGE: Graphic showing “Sanitary Sewer” (Goes to Plant – OK) vs “Storm Drain” (Goes to River – NO).]