ERP - Environmental Risk Professionals

Wastewater Management

Campgrounds may operate on-site wastewater treatment systems comprising package plants and treatment ponds or treat their sewer in septic systems with leach fields. Improper operation and maintenance of wastewater treatment plants, or leaks from septic tanks and associated piping, can release contaminants into the soil, reach groundwater, or migrate off-site and negatively impact nearby surface waters. Wastewater contamination can damage local drinking water systems and expose the owner of the campground to claims for property damage and possible bodily injury claims.

Storage Tanks

Underground and aboveground storage tanks typically store materials such as petroleum products (fuels, new and used oil) and chemicals. Leaks or a malfunction of equipment, pumps, valves, and pipes can cause a release of contents. Spills can also occur during the loading and unloading of material and wastes. Improper or no secondary containment can allow contents to leach into the underlying soils and groundwater, collect in run-off, or migrate off-site or into surface waters.

Vehicle and Equipment Leaks

Leaking of fluids, such as motor oil, hydraulic fluid, gasoline, or diesel fuel from equipment used at the campground, such as trucks, motorized boats, and off-road vehicles, can lead to contamination of the soil, groundwater, or surface water. Releases to surface water may cause damage to natural resources such as fish, wildlife, biota, and air, and it may also negatively impact local drinking water sources.

Mold and Moisture Intrusion

Many campgrounds contain restroom and shower facilities that may develop mold that leads to illness of the campers/guests, which may result in bodily injury claims against the owners. These buildings may also be equipped with HVAC systems, such as air handling units, coils, and ductwork, that may develop mold from improper ventilation or humidity management within the structure. Mold could also develop in the buildings from moisture intrusion due to storms and flooding or from leaking water pipes and sprinkler systems.

Illicit Abandonment

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.

Fire Emissions and Run-off Risks

A fire in buildings located on a campground could emit toxic fumes and smoke from the materials stored in the buildings or a mix of materials due to the fire. Firefighting 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.

Carbon Monoxide Gas Emissions

Vehicles and powered equipment, such as forklifts and trucks, may be used at campgrounds. These types of internal combustion vehicles are powered by diesel or propane, which can emit carbon monoxide gas.

Propane Storage and Explosion Risks

Propane gas could be used at a campground to fill canisters at campsites for cooking and heating. Improper management of the propane gas tanks, including container breaches, can result in a loss of product that may result in an explosion. An explosion or the release of propane gas could create unhealthy air emissions, resulting in third-party bodily injury claims against the campground.

Legionella

Legionella is a bacterium that causes potentially fatal pneumonia known as Legionnaires’ disease. Legionella can thrive in water-containing systems like large air conditioning and heating systems, plumbing systems, water features, and shower and sanitary facilities. Poorly maintained systems and inadequate corrosion control or sanitization can result in Legionella growth and dispersal through the mist and airborne droplets and can cause illness in visitors to the property.

Waterborne Pathogens and Pool Contamination

Campgrounds that operate swimming pools or water parks expose guests and visitors to the potential presence of bacteria, viruses, or infectious diseases in the water, such as Cryptosporidium and E. coli.

Existing Contamination

Existing soil or groundwater contamination may be on, under, or adjacent to a property, resulting in potential environmental liability. Abandoned underground storage tanks could also be discovered on the property, leading to expensive removal activities and cleanup of any releases. Without knowledge of existing contamination at the site, the campground owner may be held responsible for addressing the cleanup or remediation of the property.

Chemical Storage and Vapor Hazards

Various materials are stored on-site for facility maintenance and operation, such as pool chemicals, commercial cleaners, parts wash solvents, paints, pesticides, lead-acid batteries for golf carts, and new and spent engine fluids such as antifreeze, motor oil, and brake fluid. Improper storage, spills, or mixing of incompatible chemicals could result in a violent reaction, corrosive damage, or the release of toxic vapors that pose an inhalation hazard to third parties.

Machinery Fluids and Storage

Golf course equipment such as mowers, aerators, tractors, and utility vehicles use fuels, oils, and hydraulic fluids and can experience a leak from a rupture or malfunction of parts or equipment rollover. Spills and leaks can also occur during on-site storage, maintenance, loading, and unloading of fuel and fluids into equipment.

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 costs

Both sudden and gradual pollution conditions

First and third-party transportation pollution liability

Loading and unloading

Defense costs for third-party claims

Mold, bacteria, viruses, legionella

Lead and asbestos

Natural resource damage

Civil fines and punitive damages, where allowed by state law

Business interruption and extra expenses

Aboveground and underground storage tanks

Disinfection expenses

Emergency response expenses

Claims Scenarios & Examples

A campground operated a golf course near a community lake used for fishing and swimming. Stormwater run-off from the golf course would routinely flow into the lake. Over time, the lake became contaminated from the excess application of pesticides and herbicides on the golf course that would run-off into the lake. The environmental regulatory agency fined the campground owners and ordered them to immediately clean up the lake.

A Legionella outbreak occurred at a campground due to improper sealing of ducts during the installation of a new HVAC unit in the shower and sanitary facility, allowing condensation to build up. Several guests and visitors became ill, and as a result, they brought suit against the owner of the campground and the contractor who installed the system.

Owners of a national campground company acquired a neighboring property to expand one of its campgrounds. Their new location had previously been used for manufacturing and shipping. When excavation on the property began, an abandoned on-site waste treatment lagoon was discovered. The soil had to be removed at the campground owner’s expense. Remediation and disposal costs exceeded $750,000.

The campground owner owned several parcels of vacant land they planned to develop into a campsite. When the owners visited the site to begin constructing the campground, they discovered several piles of unidentified waste had been illegally dumped on the property. The owners had the piles tested; test results showed the piles contained hazardous waste. The cost for the owners of the campground to dispose of the waste exceeded $650,000.

The campground owner paid $175,000 in remediation expenses because an aboveground storage tank containing fuel oil developed rust and a small leak. A retention pond near the tank was observed to have an oily sheen. The tank was found to be the source of the oil. The owner was forced to pay on-site remediation expenses, legal expenses, and investigation expenses because its general liability carrier denied the claim based on the absolute pollution exclusion outlined in the policy.

Several former visitors of a campground alleged that they contracted Legionnaires’ disease from the spa tub and guest room showers, alleging that the campground negligently maintained its potable water and plumbing systems, causing an accumulation of Legionella bacteria in the water that they inhaled and ingested. The owner’s insurance company denied coverage under its general liability policy and filed a declaratory action declaring that it had no duty to defend or indemnify the campground.

A chemical leak in the pool area of a campground sickened as many as 100 people, sending 12 of them to local hospitals. It was not immediately clear what kind of chemical was responsible for the fumes, which caused some campground visitors to have difficulty breathing, but 12 campers were transported for medical care.

After 30 children and 16 adult campers became ill, a privately owned campground used for many years as a summer camp was closed indefinitely due to the norovirus. The owners endeavored to disinfect common areas at the campground by cleaning and wiping down the facilities with bleach. The owners planned to re-open the campground after thoroughly cleaning the property and if a new outbreak did not occur with their staff. The owners voluntarily refunded money paid by the campers.

A local health authority identified at least 72 people who were part of a waterborne illness outbreak after swimming in a pool at a popular campground. The people suffered from extreme diarrhea and vomiting, symptoms consistent with cryptosporidiosis or STEC infection. Cryptosporidiosis is a parasitic illness that can end up in recreational water through the presence of fecal matter. Following testing of the individuals, it was determined that they had contracted a Cryptosporidium infection. It was also determined that they all had stayed at the same campground and utilized the swimming pool and other water recreational facilities while camping there.

Equipment maintenance workers at a campground used solvents for washing and cleaning parts for equipment used on the site. The work was performed over a drain where they discharged the spent solvent. The drain leads directly to an on-site septic system. Over time, the septic system leach fields migrated into the surrounding soils and groundwater. The contamination was discovered during the septic system closure and conversion to a public sewer system. Site remediation involved soil removal and the installation of a groundwater recovery system. The costs exceeded $720,000.

A campground maintained its sewer lines for its on-site wastewater treatment plant. Due to the age of the lines, several cracks developed over the years. These cracks continuously leaked raw sewage over many years, eventually polluting a nearby stream. Residents in the area sued the treatment plant for the cost of remediating the stream and the loss of enjoyment of the stream.

A heating oil tank at a campground failed and released 5,000 gallons of oil into the ground. The local environmental agency required cleanup and monitoring of the site. The owners of the campground initially paid for the remediation of the property. The cost of cleanup was $400,000.

Property Types

Campgrounds

Environmental Exposures May Include: