Property Types

Electroplating Facilities

Electroplating facilities may handle and store many chemical and toxic substances that can lead to environmental liability. These facilities use an electric current to apply a thin metal layer on a substrate. Plating baths are often used in the process, and many baths contain cyanide and acid-based solutions. Various other hazardous chemicals and additives are often used, including heavy metals, hexavalent chromium, volatile organic compounds, semi-volatile organic compounds, acids, and caustics. Using and storing chemicals in manufacturing can lead to soil and groundwater impacts over time or from sudden and accidental spills. Releases can result in vapor intrusion risks to on-site or off-site receptors. Releases or spills could also enter on-site drains or be carried in stormwater to water sources or surface waters, leading to human health hazards or natural resource damage claims. These facilities also generate hazardous and solid wastes, and off-site disposal could lead to cleanup liability at non-owned disposal facilities.

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Environmental Exposures May Include:

Electroplating Solutions
Chemical Storage
Wastewater
Historical Contamination
Per-and Polyfluoroalkyl Substances (PFAS)
Solvents
Air Emissions
Stormwater Run-off
Hazardous Waste Management
Contaminant Migration
Accidental Releases During Transport

Electroplating Solutions

Metals, acids, cyanide compounds, and other hazardous constituents may be released into the environment when electroplating solutions are spilled onto the floors or when wastewater and waste sludge are not properly managed. Spills or leaks can occur from plating baths, aboveground storage tanks, transfer piping, or containers of chemicals or wastes. If secondary containment is not provided or if the containment is unlined, cracked, or damaged, contaminants can migrate into the subsurface, causing various environmental risks.

Chemical Storage

Chemical storage areas, testing laboratories, paint booths, paint mixing rooms, shipping and receiving areas, storage sheds, parking lots, and other outside areas where chemicals may be handled, stored, spilled, or illegally discharged to the ground can also present risks for environmental liability.

Wastewater

Many electroplating facilities have wastewater treatment systems. Collection systems for wastewater, such as drains, underground or aboveground piping, sumps, etc., can leak, impacting underlying soils and groundwater. Treatment system components, such as treatment tanks and piping, can be subject to sudden and accidental releases, resulting in various environmental risks.

Historical Contamination

Historic plating operations may differ from current plating operations in the toxicity of chemicals used and how chemicals are handled and stored. Past operations may have left lasting environmental impacts that result in on-site or off-site cleanup, bodily injury or property claims, or natural resource damage claims.

Per-and Polyfluoroalkyl Substances (PFAS)

The metal plating industry historically has used and continues to use per-and polyfluoroalkyl substances (PFAS) in some metal plating applications, most notably in hard and decorative chromium plating, chromic acid anodizing, and chromium etch for plating on plastic processes. In 1995, the Environmental Protection Agency recommended using perfluorooctane sulfonate (PFOS) as a fume suppressant in chromium electroplating. Its use was eliminated by 2015; however, PFAS, including PFOS, has still been found to be present in wastewater generated from some plating operations. These substances are highly persistent, potentially impacting soil or groundwater, migrating over extensive distances in groundwater, impacting surface waters, or being discharged in wastewater to public treatment systems. On-site and off-site cleanup, third-party bodily injury and property damage, non-owned disposal facility, and natural resource damage claims exposures could result from these past and present uses.

Solvents

Chlorinated solvents were often used at electroplating facilities to degrease and clean parts before plating. Chlorinated solvents can migrate through concrete surfaces and are persistent in the environment. These chemicals can also present a vapor intrusion risk, impacting indoor air quality. On-site and off-site cleanup, third-party bodily injury and property damage, non-owned disposal facility, and natural resource damage claims exposures could result from their past use.

Air Emissions

Electroplating operations generate fugitive and stack air emissions and may require wet scrubbers to control emissions. If stack emissions are not properly controlled, stack emissions could be distributed over a wide area before settling out of the air. Building materials, soil, groundwater, and stormwater near vapor collection exhaust systems may have residual concentrations of metals. On and off-site cleanup and third-party claims could result from impacts from air emissions.

Stormwater Run-off

Stormwater run-off from electroplating facilities could come in contact with chemicals, debris, wastes, and other outside storage, contaminating soil, groundwater, and natural resources, such as rivers, lakes, and streams.

Hazardous Waste Management

Hazardous wastes are typically generated from operations at electroplating facilities. Spills or releases can occur during handling or storage, resulting in exposure to cleanup, third-party, or natural resource damage claims. Additionally, off-site disposal of these wastes can lead to liability for the cleanup of non-owned disposal facilities.

Contaminant Migration

Often electroplating facilities are located in industrial areas within a city. 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 owner of the electroplating facility.

Accidental Releases During Transport

Accidental releases can occur when transporting chemicals used in the electroplating process or wastes generated by the operations. Improper cargo securement, a loose valve, or vehicle accidents can result in spills of these chemicals or wastes that could result in a pollution condition, third-party claims, or natural resource damage claims.

Environmental Pollution Liability Can Provide Coverage For

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, property damage, and cleanup costs arising from on-site or off-site pollution conditions

Defense of third-party claims

Both sudden and gradual pollution conditions

Aboveground and underground storage tanks

Loading and unloading

Emergency response costs

Civil fines and penalties

Business interruption resulting from pollution conditions

First and third-party transportation pollution liability

Crisis/reputation management

Non-owned disposal sites

Natural resource damage claims

Claims Scenarios & Examples

An electroplating facility’s underground storage tank spilled 3,640 gallons of chromic acid. The facility continued to operate for 16 more years, and after the company ceased operations, investigations discovered that operations had impacted site buildings, soil, and groundwater with hexavalent chromium. The hexavalent chromium impacted groundwater migrated over a significant distance and was found seeping into basements of residences in the surrounding community. Over 500 homes in the area have been investigated, and 14 have been remediated thus far. The overall cleanup, including on-site cleanup of buildings, concrete, soils, groundwater on-site and off-site, and remediation of area residents’ basements, is estimated to exceed $42 million.
Vapor degreasers that used chlorinated solvents were used in the past at an electroplating facility to clean parts before plating. Over the years, the chlorinated solvents spilled on the underlying concrete and migrated to the underlying soils, groundwater, and soil vapor. The cleanup of the site was estimated to exceed $900,000.
A plating operation used a PFOS-containing fume suppressant to control air emissions from its chromium plating operations. When testing for the local water system and groundwater detected PFAS, the state required the plating operation to perform site investigations to determine if the plating facility contributed to the impacts. The plating operation could be named a potentially responsible party in the water system and groundwater cleanup.
The wastewater system for an electroplating operation malfunctioned, resulting in the overflow of a wastewater storage tank and the release of cyanide and heavy metal-containing wastewater. The wastewater flowed into a nearby stream, causing a fish kill. The facility was required to clean up site soils and stream sediments. Natural damage claims were filed against the company for impacts to the stream.
Lanes were closed on a highway for a hazardous waste cleanup when a yellow-green liquid chemical oozed onto a freeway from a former adjacent electroplating operation. The liquid was found to be groundwater contaminated with hexavalent chromium, which had migrated underground to a storm sewer leading to the highway. More than 300,000 gallons of contaminated liquid were removed from storm drains and sump wells from the site. Extensive soil and groundwater remediation were required at the site.
A military and aerospace manufacturer performed electroplating as part of their operations. The facility routinely generated and treated large quantities of hazardous wastes, including corrosive plating solutions, rinse waters, and sludge containing cyanide, chromium, cadmium, copper, and nickel. Large quantities of cyanide crystals were in the floor grates in the plating area adjacent to an acid tank, where acid rinse waters drip off parts. A spill of acid from the tank caused the cyanide crystals and acid to react and produce a cyanide gas. The gas resulted in the evacuation of the facility and the neighboring commercial businesses.

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.

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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