Transporters

Cannabis Transporters

Transporters move raw materials such as cannabis flowers, extracts, oils, powders, and other materials from growers, extractors, distributors, etc., to manufacturers of cannabis products. They may also transport products from manufacturers to retailers and waste from cannabis operations to composting, recycling, or disposal facilities. Some raw materials and wastes may be hazardous. A release of raw materials, products, or wastes could occur during transit and result in environmental contamination. Vehicles may be involved in accidents that cause overturns or roll-overs, where the contents of their vehicles are spilled or released into the environment. Leaks or spills could occur during the loading or unloading of transport vehicles. The release of raw materials, products, or wastes may impact soils, groundwater, or surface waters and harm natural resources.

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Environmental Exposures May Include:

Transit Spills and Releases
Hazardous Waste Management
Loading & Unloading
Fluid Leaks and Run-off

Transit Spills and Releases

Releases may occur during an accident involving a truck transporting cannabis raw materials, products, or wastes, via a rollover or upset on a highway or roadway. Additionally, a leak can occur from a drum, tote, tanker truck, or other container in transit. The release may enter the side of the roadway and contaminate nearby properties or travel to shallow groundwater or surface water, such as lakes, rivers, streams, or creeks. A release to groundwater or surface water could contaminate drinking water sources or cause natural resource damage.

Hazardous Waste Management

Some waste products from cannabis operations may be considered to be hazardous wastes. Improper waste disposal could require the transporter to recover the waste and pay for any damages and expenses related to remedial action at the disposal facility.

Loading & Unloading

Spills or releases during the loading and unloading of cannabis raw materials, products, or wastes could contaminate the property where the materials are being picked up/dropped off or a neighboring property. Releases could migrate to soil or groundwater or be discharged to surface waters. Cleanup or third-party bodily injury or property damage claims can result, as well as claims for damage to natural resources.

Fluid Leaks and Run-off

Transport vehicles contain fuel, oil, hydraulic fluid, and other automotive fluids. Spills during maintenance or fueling operations or leaks from mounting, lines, hoses, fittings, valves, and connections while garaged or in transit can contaminate soils and groundwater or discharge into surface waters through drains or stormwater run-off.

Transportation Pollution Liability Can Provide Coverage For

First-party and third-party transportation pollution liability

Transportation loading and unloading

Over-the-road pollution coverage may also cover the insured in the event of a fuel or chemical spill from a covered vehicle

Civil fines and penalties, where allowed by law

Third-party claims for cleanup

Third-party claims for property damage

Third-party claims for bodily injury

Defense of third-party claims

First-party emergency response costs

Claims Scenarios & Examples

A rollover accident caused a tanker truck to spill 40,000 pounds of hot, liquid chocolate, which was being delivered to a cannabis manufacturing plant for processing into edibles. The accident occurred when the latch connecting the truck to the trailer detached. The chocolate flowed into a storm drain and was discharged to a nearby stream, impacting the water quality in the stream. The trucker’s general liability policy declined to cover the emergency response costs and cleanup because of a “total pollution exclusion” in the policy.
A truck carrying drums of cannabis extracts and oils to a manufacturer overturned when the truck slid on some ice. Some of the drums were damaged in the accident, spilling the materials onto the roadway. The driver quickly placed spill mats over nearby drains to prevent spilled chemicals from being discharged into the drains. The transport company was liable for cleanup costs from the spill.
A hydraulic hose failed on a truck transporting cannabis products to retailers. Approximately 55 gallons of hydraulic oil were released into the street in front of a cannabis retail store. The oil reached a nearby storm sewer and discharged into a stormwater retention area. The cleanup costs exceeded approximately $34,000.
A transporter moved waste solvents from a cannabis processing facility to a disposal site. The transporter assisted the generator in choosing the disposal site. Several years later, the transporter was named a potentially responsible party for the cleanup of the disposal site related to the hazardous waste they transported. The disposal site, which had subsequently gone bankrupt, had mishandled wastes received at the site, leading to contamination.

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.

Disclaimer

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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