ERP - Environmental Risk Professionals

Workmanship Leaks & Moisture-Driven Mold Exposure

Leading causes that generate mold exposure for contractors include 1) work conducted disturbs an existing system causing leaks, 2) newly installed work develops a leak, and 3) newly installed raw material is exposed to moisture conditions. Exposures may pose health hazards to building occupants and can absorb into building materials creating cleanup liability and property damage.

Legacy Asbestos, Lead & Hazardous Material Disturbance

Accidental disturbance of existing asbestos, lead-based paint, PCBs, or mold during installation, repair, renovation, or demolition work could release hazardous particulates that cause serious health hazards and require environmental cleanup.

Hazardous Waste Segregation & Manifest Liability

Improper disposal of wastes can lead to cleanup costs and environmental tort liability. Hazardous materials or waste contaminated with pollutants may require special disposal procedures. Hazardous waste may be inadvertently mixed with construction debris/waste and then disposed of improperly. Investigations for improper disposal at a disposal facility can result in potential liability for all parties that manifested waste to the facility.

Pre-Existing Contaminated Soil & Site Spreading

Unknown pre-existing contaminated soil at a jobsite could be collected and spread. Contamination could be spread to the site’s clean areas or create environmental liability in the transportation and disposal of the excavated material.

Subsurface Utility Strikes & Underground Infrastructure Damage

Subsurface work can impact underground utilities, such as gas lines or sewage pipes, and hazards, such as abandoned storage and septic tanks. Accidental puncture and release of fuel oil, chemicals, toxic gases, or sewage can contaminate soil and groundwater and release hazardous air emissions.

Water System Installation & Legionella Bacterial Hazards

Improper installation or maintenance of water-containing systems could allow conditions for the growth of Legionella, a bacterium that causes a form of potentially fatal pneumonia.

Subcontractor Management & Vicarious Pollution Liability

The actions of subcontractors and their hazardous material exposure can become the liability of the contractor that hired them and is responsible for their work activities.

Mobile Transit Spills & Cargo Transport Liability

A leak or spill during transit to and from a jobsite or disposal facility or during loading and unloading operations could release hazardous chemicals, waste debris, or raw materials. Transportation exposures may be from the insured operating their own vehicles or contingent liability through those they hire.

Heavy Equipment Refueling & Hydraulic Fluid Spills

Heavy equipment and portable refueling tanks may be brought to and stored on the jobsite. Equipment may be powered by diesel fuel and require petroleum-based hydraulic fluids and lubricants. Fluid releases, leaks, or accidental spills during refueling, maintenance, or transport can discharge pollutants.

Job-Site Chemical Storage & Toxic Vapor Intrusion

Toxic materials may be used and stored at a jobsite. Spills and leaks of materials such as adhesives, sealants, solvents, and cleaners could result in extensive cleanup liability. Air emissions from fumes, overspray, or mixing incompatible chemicals can release toxic vapors that pose an inhalation hazard to third parties.

Equipment Washout Wastewater & Storm Drain Discharges

Wastewater from equipment washout may contain toxic, caustic, and corrosive materials. Improper washouts or leaks can impact adjacent properties or enter storm drains which discharge to surface waters such as rivers, lakes, or estuaries and cause significant damage to natural resources and aquatic life.

Erosion Control & Sediment Run-off

Improper erosion controls for work that disturbs, relocates, or stockpiles soils can lead to contaminated run-off of silt and sediments. These particulates are readily carried off from rain, accidental pipe breaks, or excessive watering from dust suppression, and they can impair the functioning of stormwater drainage systems and cause damage to ecological systems and adjacent properties.

Fugitive Dust & Respirable Crystalline Silica Emissions

Demolition or abrasive manipulations of surfaces, such as sanding, sawing, or drilling, can create harmful dust or dislodge pollutant particles into the air that contain allergenic or disease-causing contaminants, including crystalline silica and asbestos. Often referred to as fugitive dust, emission may escape from the protected area or contaminate existing ventilation systems.

Environmental Pollution Liability Can Provide Coverage For

Contracting operations completed “by or on behalf of” the insured

Contracting operations performed at a jobsite

Third-party claims for bodily injury and property damage

Third-party claims for cleanup

First-party emergency response cost

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

Sudden and accidental coverage for owned/leased locations

First and third-party transportation pollution liability

Loading and unloading

Non-owned disposal sites

Civil fines and penalties

Natural resource damage

Silt and sedimentation

Defense expenses

Claims Scenarios & Examples

An appliance installation contractor installing a kitchen in a high-rise condominium was renovating several units on the upper floor of the condominium building. During the appliance replacement, the contractor did not use the proper fittings between dissimilar existing piping and new piping. As a result, water penetrated through wall cavities to lower floors leading to mold issues. The mold remediation and restoration costs exceeded $500,000.

While installing new electrical lines in a historic building, the contractor used a hole saw to cut through a ceiling. Unknown to the contractor, the saw inadvertently disturbed and released asbestos-containing insulation material. The contractor had to pay for cleanup costs of asbestos fibers released throughout the building.

During renovation work, lead-based paint was identified while removing old walls. Although the contractor erected containment to isolate the work areas, the HVAC system was not sealed. Lead-laden dust entered the HVAC system and clogged the heating coils. The contractor was required to replace the HVAC system and pay for business interruption claims totaling $150,000.

A utility contractor retrofitted relay equipment when a switching gear was damaged, resulting in a mercury spill. The contractor allowed the mercury to sit, which volatilized and migrated into a heating, ventilating, and air-conditioning (HVAC) system. The contractor was held responsible for the cleanup and disposal of the mercury and decontaminating the entire building.

A contractor was hanging new drywall at a construction project when they accidentally drilled through a small water pipe behind the wall. The leak went unnoticed, and mold grew between the walls. The drywall contractor was held responsible for the mold’s cleanup. The contractor also had to defend themselves against third-party bodily injury claims.

A school district brought suit against their heating oil service, which accidentally spilled oil on the school premises, resulting in the school shutting down. The suit claimed that the 6,500-gallon heating oil spill resulted in $1.3 million in damage.

A food service cleaning contractor’s sludge truck overturned, spilling 1,000 gallons of used cooking oil and grease, which released onto the road and into a nearby creek. As a result, the Department of Natural Resources had to collect water samples and perform cleanup monitoring.

A grading contractor was working on a site preparation project. During the rough grading of the site, the contractor spread soil throughout the site, as specified by the engineer. Unknowingly, the contractor spread a pocket of a highly concentrated contaminant. The entire site became covered with one inch to one foot of contaminated soil. The site owner filed a suit against the contractor for spreading the contamination. The cost of cleanup was $1 million.

An excavation contractor was installing a new water main through a nationally protected area. Their excavation resulted in excessive silting into a potable lake. A claim was filed by the park authority for damage to the lake.

A street/road contractor was subject to cleanup and business interruption expenses of over $500,000 when they ruptured an unmarked petroleum pipeline. The contents were released into the subsurface soils and groundwater due to the contractor’s inadequate response to the rupture.

A utility contractor was repairing leaks on fuel lines at a shipyard. An unknown party opened the valve that separated the active lines from the inactive lines the contractor was repairing. Fuel began to flow through the lines under repair, releasing 3,500 gallons of fuel. The result was a $500,000 cleanup, including soil and groundwater remediation.

A primer was applied to the road immediately before heavy rainfall during road construction. Rainwater washed primer into the sewer system, shutting down the local wastewater treatment plant. The contractor had to pay to clean up the wastewater treatment plant and restock its anaerobic bacteria.

A residential contractor was subject to a claim that exceeded $1 million due to inadequate disposal of waste toluene. Sealants and solvents containing toluene were disposed of in a covered commercial dumpster.

Insurance Products

Contractors Pollution Liability

Environmental Exposures May Include