Property Types

Automobile Repair, Maintenance & Body Shops

Automobile repair, maintenance, and body shops face numerous environmental exposures ranging from petroleum products stored at the facility, wastes generated from automotive repair, wastewater from car washes and facility cleaning, and leaks from equipment, such as hydraulic lifts. Automobile body garages and repair facilities accumulate sludges from oil/water separators, oil filters, or the bottom of parts cleaners. They also generate waste such as spent solvents, degreasers, used parts washing fluids, mineral spirits, brake cleaner, carburetor cleaner, and immersion cleaner solvents used in automobile repair operations that can lead to disposal liability. Additionally, automobile body garages and automobile repair facilities could experience moisture intrusion into building materials that can result in mold growth.

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Environmental Exposures May Include:

Vehicle Fluid Releases
Chemical Storage
Hydraulic Lift Maintenance and Leaks
Oil/Water Separators
Battery Storage and Sulfuric Acid Contamination
Flammable Materials and Fire Hazards
Solvents
Waste Transport
Wastewater Run-off
Moisture Intrusion and Mold Growth
Waste Management
Asbestos

Vehicle Fluid Releases

Leaking of fluids, such as motor oil, hydraulic fluid, engine coolant, gasoline, or diesel fuel, can result from stored vehicles or accidental releases or spills during vehicle repair and maintenance. Releases can enter the concrete driveway and floor drains or collect in stormwater run-off, contaminating soil, groundwater, surface water, or neighboring properties. Releases to surface water may cause damage to natural resources such as fish, wildlife, and biota and can harm local drinking water sources.

Chemical Storage

Petroleum-based cleaning products and degreasers are stored in drums at the facility, along with new and used oil, antifreeze, and solvents. Improper storage can result in the release of contaminants and lead to expensive on-site cleanups.

Hydraulic Lift Maintenance and Leaks

Hydraulic lifts may be present and can be below or above ground. Releases of hydraulic fluid can go undiscovered and allow leaks into the subsurface over a long period. Releases can migrate to groundwater or enter storm drains, sewer systems, or drywells, requiring cleanup.

Oil/Water Separators

Oil/water separators may be present and can be in-ground or aboveground. They receive oily wastewater and could develop leaks, allowing oil to seep into the surrounding soil and groundwater. Releases can result in on-site contamination or migrate and contaminate neighboring properties.

Battery Storage and Sulfuric Acid Contamination

Automobile repair facilities often store new and used wet-cell automotive batteries on their properties. Damaged batteries could release sulfuric acid, which, if not properly contained, could enter storm drains, sewer systems, or drywells and migrate off-site.

Flammable Materials and Fire Hazards

Some products stored may be flammable, such as paint thinners, strippers, waste paint, solvents, and saturated shop rags, and could result in a fire that spreads throughout the facility. A fire could emit toxic fumes and smoke from the burning materials or due to a mix of materials that occurs due to the fire. Fire-fighting solutions such as water and foam could create contaminated run-off that spreads to nearby storm drains or properties, resulting in environmental cleanup and tort liability.

Solvents

Spent parts washers and cleaners may be considered hazardous due to their low flashpoint or toxicity characteristics. Common solvents in automobile repair shops include methyl ethyl ketone, 1-trichloroethylene, and toluene. Spent parts washer solvents also include heavy metals. Improper storage and handling of parts washer solvents can result in a release that may migrate to floor drains, storm drains, or nearby soil with the potential to reach surface waters and migrate to groundwater.

Waste Transport

Transporting waste materials from the facility by the owner or third-party carriers to disposal sites or recycling centers can lead to environmental liability while on the road and during loading and unloading operations. Spills or leaks resulting from accidents or improper cargo securement can lead to third-party and cleanup liability.

Wastewater Run-off

Wastewater from auto body shops and automobile repair facilities may have high levels of oil, grease, suspended solids, and heavy metals, as well as cleaning chemicals, degreasing solvents, and detergents. Run-off from work areas creates the potential for pollutants to enter trench or floor drains and eventually empty into the public storm system, where they can contaminate water sources and cause natural resource damage.

Moisture Intrusion and Mold Growth

Mold could develop from moisture intrusion due to storms, flooding, or leaking water pipes, sprinklers, and HVAC systems. Many buildings are flat-roofed, where pooled water can be absorbed by the roofing material and seep into sub-roof areas. Mold can also develop within HVAC systems (air handling units, coils, and ductwork) or from improper building ventilation or humidity management of climate-controlled storage.

Waste Management

Automobile body garages and repair facilities generate and dispose of wastes such as used oil, automobile fluids, lead-acid batteries, wastewater, sludge, oil from oil/water separators, shop rags soaked with used oil or solvents, and used tires. Materials contaminated with waste paint, such as masking paper, overspray paper, paint booth filters, paint chips from sanding, and spent grip blast material, could be considered hazardous due to heavy metal pigments in the paint. Used lamps commonly classified as hazardous waste include mercury-containing fluorescent lamps, high-intensity discharge (HID), neon, mercury vapor, high-pressure sodium, and metal halide lamps. Waste generators must determine if their wastes are hazardous and require special disposal or recycling procedures. Waste generators retain “cradle to grave” liability for their disposed of wastes, and improper characterization and disposal can result in environmental liability.

Asbestos

Asbestos can be found in some automotive brake pads and clutch systems. Accumulated dust in the brake area could contain very small asbestos particles that, if inhaled, can cause serious health hazards or fatal diseases such as asbestosis and mesothelioma. Asbestos-containing dust must be properly contained and sealed in bags to avoid dispersal within the shop and exposing customers. Bags must be labeled and disposed of per all federal, state, and local requirements.

Contractors 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 cleanup costs

Third-party claims for bodily injury and property damage

Both sudden and gradual pollution conditions

Defense of third-party claims

First-party and third-party transportation pollution liability

Business Interruption expenses resulting from pollution conditions

Mold, bacteria, legionella, and more

Natural resource damage

Emergency response expenses

Illicit abandonment

Non-owned disposal sites

Loading and unloading

Civil fines and punitive damages, where allowed by state law

Aboveground and underground storage tanks

Claims Scenarios & Examples

A waste hauler was transporting used motor oil waste from an automobile repair facility when it overturned and spilled its contents into a stream. Because the repair facility was the waste generator, they were held liable, along with the waste hauler, for the cleanup costs. The automobile repair shop was also responsible for investigating soil and water impact, remediation, and future monitoring costs.
A hydraulic lift was being removed from a former automobile repair shop when stained soil was noticed. It was found that the lift had seeped hydraulic fluid into the ground over time and that the fluid had migrated through the site and even beyond the perimeter of the service station. Most of the site had to be remediated, including significant costs for excavation, transportation, and disposal of the contaminated soil.
A third party complained that an automobile repair shop released petroleum products into a storm drain. An environmental conservation officer responded to the tip and went to the facility. A 55-gallon drum was found to be releasing oil into the nearby storm drains. The repair shop’s owner was charged for the release and was ordered to clean it up, properly store the used oil and remove waste tires found on-site.
A maintenance garage washed parts over a drain, leading to a septic system. They used solvents in the parts-washing process, and over time, the solvents migrated from the septic drain field to the soil and groundwater. The leak was noticed when the septic system was closed down to be converted to a public sewer system. Remediation had to happen on-site, and they had to install a recovery system for the groundwater. These measures cost $720,000.
An automobile repair business was found to be responsible for petroleum contamination and waste found on neighboring state-owned wetlands. The owner was ordered to clean up the polluted soil and groundwater on their property and the wetlands. They also had to pay $170,000 in civil penalties and $10,000 in other fees.
An oil/water separator for a car service center developed a fracture from one of its underground pipes. Over time, oil seeped from the system into the surrounding soils and groundwater, contaminating the service center’s land and a neighboring property. The extent of the contamination was not realized until an oil sheen was noticed on a nearby stream. An investigation resulted in a contaminated soil and groundwater treatment program. The need to quickly mitigate impacts to the stream required an expedited remediation schedule, increasing the cleanup costs to tens of thousands of dollars.
A body shop used a solvent recycler to dispose of their waste. When a downgradient potable aquifer was contaminated, the source was determined to be waste from the recycling facility. Because they were the waste generator, the body shop was found to be a responsible party and had to pay $340,000 to help settle the claims.
The state penalized a small automobile repair shop and fined it for not correctly registering as a waste oil generator and for improper storage, documentation, and labeling of hazardous waste.

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.

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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