Property Types

Asphalt Plants

Asphalt mixing facilities can face significant environmental exposures. Materials used for operations, including aggregates, liquid asphalt binder, chemical additives, and fuels, can be hazardous, and a release during storage, production, and transport can create environmental cleanup and tort liability. Improper maintenance, inspection, or use of storage tanks and various equipment can result in a hazardous release of stored contents and operating fuel and fluids. Other activities, such as cleaning, can create contaminated wastewater, and loading and unloading materials into transport vehicles can create additional environmental exposure.

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Environmental Exposures May Include:

Emissions
Fumes
Storage Tanks
Chemical Storage
Wastewater
Stormwater Run-off
Loading and Transit
Equipment Fluid Leaks
Hazardous Waste Management

Emissions

Emission sources from asphalt production can include dryers, hot bins and mixers, storage silos, liquid asphalt storage tanks, aggregate processing (screening, conveyor transfer, and reclaimed asphalt pavement [RAP] crushing), and hot oil heaters. Fugitive emissions can also be released from material stockpiles, truck load-out operations, and aggregate loading/unloading into stockpiles or feeder bins. Hazardous emissions include gaseous pollutants and dust containing particulate matter (PM10), sulfur dioxide, nitrogen oxides, volatile organic compounds (VOCs), carbon monoxide, and hazardous air pollutants (HAPs) such as arsenic, benzene, formaldehyde, cadmium, hexane, phenol, and toluene.

Fumes

Exposure to asphalt fumes can cause headaches, severe skin irritation, fatigue, nausea, throat and eye irritation, dizziness, coughing, wheezing, or shortness of breath. Exposure to these air toxins may also cause cancer and problems to the central nervous system, liver, and respiratory tract. Dust emission particles can cause lung disease, known as silicosis. Emitted fumes and odors can impact the health and property of nearby third parties. Asphalt plants are common in populated areas since pavement material must be kept pliable for proper installation and be produced near paving sites. Emissions are subject to regulatory control, and violations could lead to civil fines and penalties.

Storage Tanks

Storage tanks are used for fuel, oil, and asphalt cement. Insufficient or no secondary contaminant and leaks or spills from tanks, valves, tubes, and pipelines can allow contents or heat exchange fluids to leach into soil and groundwater or collect in stormwater run-off. Spills and leaks can also occur during the loading /unloading of material, overfilling of a tank, or improper inspection or maintenance. Improper operation of tanks can lead to fires and explosions, which can release hazardous emissions.

Chemical Storage

Materials stored at asphalt plants include fuels, oils, solvents, and chemicals, such as additives that improve mix performance. Container breaches or spills can contaminate soils or discharge into water systems, impacting groundwater, drinking water supplies and harming natural resources.

Wastewater

Wastewater generated from cleaning and wet scrubber collection may contain various contaminants. Cleaning methods of vehicles and equipment may include spraying diesel fuel or kerosene to loosen asphalt coatings, solvents, and detergents. Improper collection, containment (settling pond or clarifier), or wastewater disposal could result in environmental cleanup and liability. Solids/sludge extracted from wastewater that contains contaminants may also require hazardous waste disposal.

Stormwater Run-off

Stormwater exposed to asphalt plant operations and aggregate storage piles can become contaminated with sediments, oil, grease, and other materials and may be caustic. Improper stormwater controls can allow run-off to enter water systems and cause natural resource damage. Surface run-off of soil particles (silt and sedimentation) can impair the proper functioning of stormwater drainage systems and cause ecological damage.

Loading and Transit

Loading asphalt into trucks for transport can release toxic chemicals into the air, including volatile organic compounds, polycyclic aromatic hydrocarbons (PAHs), and very fine condensed particulates. A spill or leak of raw material or asphalt product during transport could also result in a release that leads to environmental cleanup or natural resource damage.

Equipment Fluid Leaks

Leaks of fuels, oils, and other operating fluids from heavy vehicles or powered equipment or during fueling operations could contaminate surrounding soils or leach into groundwater systems requiring environmental cleanup. Diesel/gas generators used to supply power to equipment in portable plants can also leak and generate potentially hazardous emissions.

Hazardous Waste Management

Collected wastes may contain hazardous materials and require special disposal procedures at an approved, off-site facility. Wastes could include used antifreeze and lead-acid batteries from equipment, wastewater and sludge, spent solvents, waste oil, diesel fuel, and release agents from cleaning operations. Improper collection, containment, and disposal could lead to environmental liability.

Environmental Pollution Liability Can Provide Coverage For

On-site cleanup of new and pre-existing pollution conditions

Off-site cleanup of new and pre-existing pollution conditions

Third-party claims for bodily injury and property damage

Third-party claims for cleanup

Defense of third-party claims

Both sudden and gradual pollution conditions

Natural resource damage

Business interruption resulting from pollution conditions

Aboveground and underground storage tanks

First and third-party transportation pollution liability

Loading and unloading

Non-owned disposal sites

Silt and sedimentation

Emergency response costs

Illicit abandonment

Civil fines and penalties

Claims Scenarios & Examples

After an asphalt plant experienced a chemical leak, city officials warned 300,000 nearby residents not to drink the water for the time being. The leak was a backflow incident from a tank that combined Indulin AA-86 and hydrochloric acid. About 24 gallons of chemical seeped into the pipeline carrying the water supply to the public water system. Indulin AA-86 is considered hazardous and can burn the eyes, skin, and respiratory tract if someone comes in contact with it. When an investigation was conducted, they could not find a device that prevented contaminated water from seeping back into the potable water supply.
Silos containing liquid asphalt at an asphalt plant experienced an explosion, sending debris all over and ripping off the metal insulation siding. The debris damaged a storage tank that contained tar. As a result, potentially dangerous tar stored inside was released into the environment and leaked into drains, leading to concerns about harmful environmental impacts. Fire officials investigated the site and found a faulty valve to be the likely cause.
Numerous residents complained of environmental issues coming from a neighboring asphalt plant. Their complaints included noxious odors, gritty dust that blew crushed stone onto their homes, cars, patio furniture, etc., and that run-off from the crushed stone clogged storm drains and led to local flooding. An investigation was completed on the plant, and a settlement was reached, including a $20,000 civil penalty paid to the state and an $8,450 fee to cover state costs. As part of the settlement, the plant had to have an engineering firm perform a 30-day review of pollution sources on the site and recommend how to alleviate them. They also had to pay for an odor expert to review the company’s engineering report and build, install, and undertake pollution controls. They also had to pay a fine of $1,000 per day if they violated the Agreement.
While workers at an asphalt plant filled a 2.1 million-gallon storage tank with liquid asphalt in the morning, it overflowed. The liquid was flammable, and later in the day, a fire ignited in the insulation between the tank’s outer shell and inner tank. Residents within one mile of the plant had to evacuate their homes while the fire was extinguished.
At a paving manufacturing company, 26,000 gallons of asphalt spilled over a garbage container and flowed into a storm drain, leading into a nearby river. The manufacturer was sued and had to pay $422,000 in cleanup costs.
An 18,000-gallon asphalt tank was burning at an asphalt plant, sending black smoke into the air that could be seen for miles. The fire chief called it a three-dimensional fire as it spread out from the tank and vertically in the tank. There were concerns about contaminants in the run-off, so the state’s Department of Environmental Protection got involved. Tests were ordered for the soil after the fire was put out.
When an asphalt plant was found to emit pollutants, including nitrogen oxide, sulfur dioxide, and fine particulate matter, at higher levels than allowed, the plant was sued for diminishing the air quality. The pollutants the plant released were associated with serious respiratory ailments and other issues that especially affect children and older adults. The plant was forced to comply with federal and state air quality regulations. The plaintiffs also claimed the pollutants could affect nearby property values and the city’s economic future. Air quality and environmental experts were hired for the plant’s current permits and documents. Miscalculations were found in the plant’s estimated emissions, and the experts concluded the plant was operating at air-quality levels exceeding safety limits established by the EPA.

Final Consideration

Your business can be faced with the cost to defend itself against allegations or legal action from pollution related events, regardless if you are at fault or not. Having the proper insurance coverage in place will help fund the expenses incurred to investigate or defend against a claim or suit and provide you with environmental claims handling expertise.

This environmental risk overview offers a general understanding of potential risks and may not reflect all risks associated with your business. Environmental Risk Professionals has compiled this overview for informational purposes only. This overview does not constitute legal opinion or advice, nor does it establish a consultant-client relationship. This overview is not intended to guide project parties in interpreting specific contracts or resolving disputes; such decisions may require consultation with counsel and depend on various factors. © 2025 Environmental Risk Professionals, LLC

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