Property Types

Detergent Manufacturing

The detergent manufacturing industry produces cleaning products, such as laundry detergents, dishwashing liquids, and other household or industrial cleaners, using a variety of chemicals, including surfactants, enzymes, fragrances, and preservatives. During manufacturing, chemical spills, air emissions, and wastewater discharges can contaminate nearby water sources and soil, harming ecosystems and posing risks to public health. The production of certain detergents may release volatile organic compounds (VOCs) into the air, contributing to air pollution. Additionally, the chemicals used in detergents can accumulate in aquatic systems, affecting aquatic life and potentially entering the food chain. Proper treatment and disposal of industrial waste are crucial to mitigating these environmental impacts.

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Environmental Exposures May Include:

Bulk Storage
Wastewater
Stormwater Run-off
Accidental Releases During Transport
Mold
Equipment Cleaning
Hazardous Waste Management
Off-Site Contaminant Migration
Vandalism
Illicit Abandonment

Bulk Storage

Raw materials may be received in bulk and stored in large tanks. Spills, releases, or leaks may occur during the loading or unloading of these materials, resulting in environmental contamination.

Wastewater

Wastewater generated from detergent manufacturing may contain surfactants, phosphates sodium tripolyphosphate, and other chemicals, including sodium metasilicate and citric acid, that can significantly impact water quality. Improper wastewater disposal can contaminate soil, groundwater, and surface water. High concentrations of surfactants can create foam in water bodies, which can affect aquatic life and the aesthetic quality of the water. Some of the chemicals in detergents, such as surfactants and phosphates, can alter the pH of the soil, affecting plant growth and contaminating groundwater.

Stormwater Run-off

Stormwater run-off could contact manufacturing facilities’ chemicals, debris, fueling areas, wastes, and other outside storage. Heavy-duty trucks loading and unloading at manufacturing facilities can leak automotive fluids on the property. If stormwater is not properly controlled, contained, or pre-treated before discharge into sanitary or storm drainage systems, it can pollute soil and groundwater or discharge directly into surface waters, impacting human health and aquatic systems.

Accidental Releases During Transport

Accidental releases during the transportation of products or wastes from a manufacturing facility due to improper cargo securement, a loose valve, or vehicle upsets or overturns can result in environmental liability.

Mold

Mold could develop from moisture intrusion due to storms or flooding from leaking water pipes, sprinklers, and HVAC systems. Many manufacturing 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 or from improper building ventilation or humidity management of climate-controlled areas within the building.

Equipment Cleaning

Cleaning storage tanks and processing equipment may generate wastewater or sludge. Wastewater treatment systems may be present at facilities, or these waste materials may be taken to a non-owned disposal facility or wastewater treatment facility. Releases of insufficiently treated wastewater or spills could occur during cleaning, transport, or transfer from waste storage areas and create environmental risks. Improper waste disposal could lead to environmental liability or legal consequences for violating regulatory requirements.

Hazardous Waste Management

Manufacturers may generate hazardous or regulated wastes requiring special disposal procedures. Improper waste disposal could lead to environmental liability or legal consequences for violating regulatory requirements. A manufacturer can become a Potentially Responsible Party (PRP), liable for cleanup costs in the environmental cleanup of a non-owned disposal (NOD) facility where they sent wastes.

Off-Site Contaminant Migration

Many manufacturing facilities are located in industrial areas. Contaminants from neighboring facilities could migrate to the manufacturer’s property. If the neighboring business owner is not properly insured or goes bankrupt, the cost of cleanup could fall on the manufacturer for their property. Additionally, historic site uses could have impacted the site, and the current operator could be liable for cleanup under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

Vandalism

Inadequate security can allow vandalism to occur at a facility. Damage to facility equipment, such as aboveground tanks or containers of chemicals, can result in environmental releases.

Illicit Abandonment

Illicit abandonment is the illegal dumping of pollutants on a property by a third party. If law enforcement cannot locate the originator of the waste, the property owner can be held responsible for cleanup and third-party bodily injury or property damage.

Environmental Pollution Liability Can Provide Coverage For

Integrated GL/site pollution and options to include excess, auto, and workers' comp may be available

Monoline site pollution liability

Third-party claims for bodily injury and property damage

First-party and third-party cleanup

Both sudden and gradual pollution conditions

Defense of third-party claims

Emergency response costs

Natural resource damage

First and third-party transportation pollution liability

Loading and unloading

Products pollution liability

Business interruption resulting from pollution conditions

Aboveground and underground storage tanks

Non-owned disposal sites

Civil fines and penalties

Mold, legionella, and more

Illicit abandonment

Claims Scenarios & Examples

A class action lawsuit was filed against a detergent manufacturer for allegedly engaging in “greenwashing” with its laundry detergent, making it seem environmentally friendly. The lawsuit claims that the packaging of the laundry detergent features designs of natural elements, which mislead consumers into believing the product is sustainable and contributes to environmental protection.
A non-profit advocacy organization filed a lawsuit against a major detergent manufacturer for violating the Safe Drinking Water and Toxic Enforcement Act. As a result, the manufacturer was compelled to lower the levels of the chemical 1,4-dioxane in its laundry products. This chemical is recognized as a carcinogen, and the manufacturer agreed to reformulate its detergent for distribution nationwide.
A detergent manufacturer had to issue a recall for around 8 million of its laundry and household cleaning products due to concerns they may contain elevated levels of bacteria, including multiple species of pseudomonas. The bacteria can affect people with weakened immune systems or external medical devices, resulting in a risk of serious infection that may require medical treatment.
An employee at a detergent manufacturing facility accidentally dropped a large tote of liquid laundry detergent, rupturing the container. The contents spilled and migrated into the site’s stormwater drainage system, which discharged into a retention pond. About 330 gallons of laundry detergent were released into the pond. The manufacturer was responsible for state spill response expenses, natural resource damage assessment, improvements to their spill prevention equipment, and employee training.
One weekend, a break-in occurred at a manufacturing facility, and The vandals damaged a valve on a 10,000-gallon tank full of chemicals. The damaged valve leaked until Monday morning when facility employees discovered it. Although most of the tank’s contents needed to be removed and properly disposed of from the containment area, local environmental officials required subsurface testing of soils and groundwater. Total costs for the company were over $90,000.
An unknown party illegally placed a container of hazardous liquid into a dumpster at a small manufacturing facility. The container leaked and contaminated the dumpster’s contents, which in turn contaminated the waste on the transfer station’s tipping floor. Cleanup costs and legal fees exceeded $150,000.

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 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.

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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