Storage Tanks
Aboveground storage tanks (ASTs) and underground storage tanks (USTs) may be used to store petroleum products. Improper management or monitoring of ASTs, USTs, and associated equipment can lead to spills and releases. Spills can also occur during the loading or unloading of materials. USTs, dispensers, sumps, piping, and other components may leak over time or fail suddenly. ASTs have the potential to experience leaks from tank bottoms or ruptures. Damage, cracks, or overflow of secondary containment, or inadequate secondary containment, can allow leaked contents to leach into the underlying soil and groundwater. Released contaminants may contaminate soil or groundwater, enter drywells or storm drains, migrate to neighboring properties, or degrade natural resources.
Spills
Fluids, such as motor oil, hydraulic fluid, gasoline, or diesel fuel, can leak from vehicles being fueled or accidental spills and leaks from nozzles. Releases of these fluids can lead to soil and groundwater contamination or migrate and enter drywells or storm drains. Releases to surface water may cause damage to natural resources such as fish, wildlife, and biota, and it may also harm local drinking water sources.
Waste Management
Convenience stores may generate wastes, such as oil-contaminated spill absorbents or oily water, from testing or cleaning out UST system components. Wastes must be properly characterized, transported, and disposed of at facilities that accept the material. Waste generators retain “cradle to grave” liability for waste disposal and could become liable for pollution conditions at non-owned disposal sites (NODS).
Water Intrusion and Mold
Storms, flooding, roof and window leaks, and leaks from water pipes, sprinklers, and HVAC systems can lead to water intrusion into building materials and mold growth. Additionally, mold can develop within HVAC systems or from improper building ventilation or humidity management. Mold incidents can lead to third-party bodily injury, property damage, or cleanup claims.
Cargo Securement and Accidental Releases
Transportation of fuels, products, and wastes to or from a convenience store may be with the owner’s fleet vehicles or by third-party carriers. A release of these materials while on the road due to accidents or improper cargo securement or during loading and unloading operations can lead to environmental liability for third-party bodily injury and property damage and cleanup costs.
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 claims if law enforcement cannot locate the originator of the waste.
Flammables
Flammable materials are stored at fueling stations. A fire can be sparked at a gas station, releasing potentially hazardous toxins into the air. Firefighting solutions such as water and foam could create contaminated run-off that spreads to nearby storm drains or other properties, resulting in environmental cleanup and tort liability.
Toxic Vapors
Vapor recovery systems at gasoline service stations are designed to capture up to 95% of the vapors and recycle them into fuel storage tanks. Poorly ventilated or faulty systems can result in third-party exposure to unhealthy levels of carbon monoxide and toxic fumes.
Grease Trap Failures
Convenience stores, fast food, and restaurant services may have grease traps and interceptors, which must be properly sized, installed, and maintained. Improper maintenance or containment of grease waste can result in a release that could contaminate adjacent properties or enter a drainage system. Storm drains may discharge to surface waters. Grease that enters sewer and storm drains can also impair the proper functioning of the drain and result in a buildup of poisonous hydrogen sulfide gas or a sewage backup spill.
Refrigerants
Refrigeration systems, chillers, and walk-in coolers may be present at convenience stores and use chemicals such as ammonia, hydrofluorocarbons (HFCs), or chlorofluorocarbons (CFCs). Releases of these chemicals can cause health hazards to third parties, including respiratory illness and even death.
Asbestos and Lead
Depending on the age of the convenience store structure, asbestos-containing materials (ACM) or lead-based paint (LBP) could be present. ACM could be present in duct insulation, piping, fireproofing insulation, roofing materials, etc. Dust or paint chips containing lead can be generated from disturbance of LBP. Third-party bodily injury or cleanup claims can result from accidental disturbance of these materials.
Environmental Pollution Liability Can Provide Coverage For
On/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
Non-owned disposal sites (NODS)
Business Interruption expenses resulting from pollution conditions
Loading and unloading
Aboveground and underground storage tanks
Mold, bacteria, legionella, and more
Natural resource damage
Emergency response expenses
Civil fines and punitive damages, where allowed by state law
Illicit abandonment