ERP - Environmental Risk Professionals

Mold

Mold growth can result from water and wastewater releases due to leaks, overflows, poorly installed building materials, and blocked drains or pipes. Mold may also develop in water systems, such as refrigeration or HVAC, and indoor pools, spas, and water features due to improper maintenance, dehumidification, or ventilation. Mold exposure may pose health hazards to occupants, including severe respiratory issues and systemic toxicity, and mold can absorb into building materials and subsurfaces, creating cleanup liability.

Sick Building Syndrome

Sick Building Syndrome” refers to a situation where building inhabitants suffer from health problems that occur and are aggravated while in a building. It is often attributed to poor design or maintenance or a building’s faulty ventilation system. Chemical contaminants, including combustion products such as carbon monoxide and biological contaminants such as bacteria, molds, pollen, and viruses, can contribute to Sick Building Syndrome.

Legionella

Legionella is a bacterium that causes a form of potentially fatal pneumonia. Legionella can thrive in water-containing systems like HVAC and plumbing and water features. Poorly maintained systems and inadequate corrosion control or sanitation can result in Legionella growth and dispersal through mist and airborne droplets. Exposure can result in illnesses such as Legionnaires’ disease and severely complicate existing respiratory diseases.

Hazardous Material Storage and Chemical Reactions

Hazardous materials stored at a facility include solvents, cleaning agents, disinfectants/sanitizers, pharmaceuticals, petroleum products, chemicals, and pesticides. Improper storage, containment breaches or leaks, or spills during loading and unloading can release these materials. Incompatible chemicals are prone to react violently or produce toxic byproducts/gases when stored together or mixed. Flammable products may result in a fire that releases other contained materials, producing hazardous vapors.

Lead Exposure

Lead could be present in paint or pipes. Lead in pipes can get into drinking water, and paint chips and dust from lead-based paint can be ingested. Exterior lead-based paint can also leach into the soil around the structure. Lead exposure can cause significant bodily injury, including brain damage, nervous system problems, digestive issues, and muscle and joint pain. Extremely high levels of lead can cause more severe bodily injury, possibly leading to seizures, coma, and death.

Bio-Medical and Hazardous Waste Management

Wastes generated, such as bio-medical, pharmaceutical, or other wastes that contain chemicals, heavy metals, mercury, or other toxic materials, can be categorized as hazardous waste. Infectious wastes must be bagged appropriately, sterilized, and taken to an approved and licensed disposal facility. Improper labeling, waste storage, transportation, and disposal can result in environmental liability.

Generator Fuel Storage and Leaks

Emergency generators may be diesel-powered and require fuel storage in aboveground or underground storage tanks. Leaks of fuel, exhaust fumes, tank/piping deterioration, and inadequate or no secondary containment can result in a release that contaminates soil and water systems or can enter the facility.

Refrigerants

Refrigerants in air conditioning and refrigeration systems can include ammonia, hydrofluorocarbons (HFCs), or chlorofluorocarbons (CFCs). Improper use or maintenance of systems can result in a hazardous release of these chemicals. Inhalation exposure to third parties may result in serious health effects or even death.

Illicit Abandoment

Illicit abandonment is the illegal dumping of pollutants on a property by a third party. It can become the property owner’s burden for cleanup and third-party bodily injury or property damage if law enforcement cannot locate the originator of the waste.

Asbestos-Containing Material

Older buildings may contain asbestos-containing material (ACM). ACM may be present in duct insulation, piping, furnaces, boilers, fireproofing insulation, ceilings, walls, flooring tile, and mastic. Leading tort claims may result from accidental disturbance or alleged exposure during renovation, construction, or interior remodeling.

Swimming Pool Chemical Hazards

Facilities with swimming pools store and use chemicals for cleaning and sanitization, including water disinfection and scale removal chemicals. These chemicals are highly concentrated and typically very reactive. Accidental reactions with incompatible materials or vapor build-up in enclosed areas may result in fire or impaired air quality.

Existing Contamination

Existing soil or groundwater contamination may be present, and abandoned underground storage tanks may also be discovered on the property, resulting in expensive removal activities and potential cleanup of releases. The owners could be held responsible for addressing the cleanup or remediation of the property.

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

Third-party claims for bodily injury and property damage

Third-party claims for cleanup

Business interruption resulting from pollution conditions

First and third-party transportation pollution liability

Both sudden and gradual pollution conditions

Mold, bacteria, legionella, asbestos, lead, and more

Aboveground and underground storage tanks

Disinfection expense

Non-owned disposal sites

Civil fines and penalties

Natural resource damage

Defense of third-party claims

Illicit abandonment

Claims Scenarios & Examples

A nursing home had an outbreak of Legionnaires’ disease from Legionella bacteria in the facility’s air conditioning unit. About 135 people were affected, and 23 people died from the disease. A class action lawsuit was filed against the nursing home. The class action was settled for $1.2 million. On top of the settlement, the nursing home was responsible for over $350,000 in defense expenses and $250,000 in additional costs for victims’ future medical expenses.

An assisted living facility had a 10,000-gallon diesel aboveground tank at their location for emergency power. The concrete secondary containment for the tank cracked, and the tank spilled 8,000 gallons. The fuel seeped into the soil; remediation costs exceeded $320,000.

A nursing home underwent an expansion project to add space for more residents. During the work, oily soil that had a petroleum odor was uncovered, and fumes entered the existing building through vapor intrusion. An investigation was done, and an undocumented sludge drying pit was found on a neighboring property used by a previous owner in the 1940s. The nursing home had to remove and remediate the soil. Costs exceeded $400,000.

The city received complaints of possible building violations at a nursing home. The violations included signs of water damage on ceilings, light fixtures, and electrical switches. Additionally, several employees reported a mold/mildew odor. Investigations led to the discovery of extensive black mold within ceiling tiles, beneath layers of peeling paint, and in areas with noticeable water leakage. Facility residents exhibited rashes, headaches, asthma, and breathing difficulty. The facility had to be temporarily shut down to perform the mold cleanup. Several families of the residents filed suits for bodily injury.

A nursing home’s power generator was located on the roof, and the diesel fuel for the generator came from a 5,000-gallon underground storage tank (UST). The hospital’s maintenance staff performed a routine check of the backup power system, and even though the generator was turned off after testing, a faulty valve caused fuel to still be pumped from the UST. Before it was discovered, 3,000 gallons of fuel had flowed onto the roof, down the drain spouts, and into a stream and storm sewer. It cost over $700,000 to remediate.

An assisted living company had several locations in various states and purchased another property to build a new nursing home. During construction, the excavation contractor punctured a 10,000-gallon underground storage tank they did not know existed. The previous owner had illegally disposed of hazardous waste in the tank, but the individual was now deceased. The contractor did not have coverage sufficient to cover the cleanup, so the assisted living company had to pay the $400,000 cleanup costs.

An ammonia refrigeration system at an assisted living community had a valve that failed and released gas. The gas spread into the surrounding area causing nearby businesses to be evacuated. Employees of the businesses complained of headaches and nausea, and the businesses filed claims against the assisted living center for business interruption costs and bodily injury, which ended up being around $190,000.

While hauling medical waste for a nursing home, the waste hauler’s vehicle overturned and spilled the load. Some of the waste migrated into a close tributary, and a major road was closed for about eight hours. Cleanup and business interruption costs totaled more than $1 million. Federal law states that generators own their waste from cradle-to-grave, so the nursing home had to contribute to the cleanup costs. The cost for the nursing home to settle the claim was $150,000.

A senior living facility reported five cases of Legionnaires’ disease, including one death. An investigation was done at the facility and found the Legionella bacteria in one apartment, a pool filter, an irrigation system, and a decorative water fountain. Efforts to mitigate the outbreak were undertaken so that no one else would contract the disease, including the installation of point-of-use filters and thermal disinfection and hyperchlorination of the water system.

A nursing home hired a mechanical contractor to remove ductwork from the HVAC system. Afterward, it was discovered that the ductwork housed dangerous fungus, and the dismantling and storage of the ductwork caused it to spread throughout the nursing home. The fungus infected many patients, some of them critically. The contractor was held liable for the spread of fungus with bodily injury and property damages exceeding $1 million. The nursing home had $100,000 in legal defense costs and $50,000 in claims management even though they were not found responsible.

Property Types

Assisted Living Facilities

Environmental Exposures May Include: