Contractors

Emergency Response Cleanup

Contractors conducting emergency response cleanup face environmental exposure from handling contaminants such as mold, asbestos, lead, radioactive waste, various poisons, chemicals, explosives, acids, petroleum products, oil spills, and other hazardous materials. They may also neutralize and cleanup materials that are flammable, corrosive or toxic. Contractors that perform this work face potential pollution risks that may be incurred during cleanup operations, and waste transport and disposal. Environmental liability could result from a release of hazardous and non-hazardous materials into the soil at the site or to neighboring properties; discharges into storm or sewer drains that may impact the municipal sewer system; and releases to surface water or groundwater that could contaminate local wells or the city drinking water system. Releases of hazardous materials or waste could result in liability for cleanup, third-party property damage and bodily injury, and damage to natural resources such as lakes, rivers, streams, biota or wildlife.

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Environmental Exposures May Include:

Lab Packing Chemicals
Site Decontamination
Improper Waste Disposal
Waste Handling and Transportation
Chemical Application
Chemical Storage
Equipment Maintenance and Refueling
Spill Containment
Wastewater Management and Run-off
Wash Water Containment and Disposal
Remediation and Abatement Failures

Lab Packing Chemicals

Emergency response contractors may be required to lab pack chemicals during cleanup actions. Improper segregation or characterization of chemicals could result in incompatible wastes, such as oxidizers, acids, and flammables, being packed together and causing a reaction, a release, or a fire.

Site Decontamination

During emergency response cleanup, failure to properly seal off, clean up and decontaminate a jobsite or failure to properly use equipment could cause a release of contaminants into areas previously unaffected or leave residual pollutants that can lead to further contamination in soil and groundwater or claims for third-party liability.

Improper Waste Disposal

During an emergency response cleanup, hazardous materials and waste require proper handling and disposal procedures. Collected wastes must be properly characterized and segregated based on their type and associated hazards. Hazardous wastes or materials that require special disposal procedures could be mixed with non-hazardous wastes and improperly disposed of. Improperly segregated and disposed of wastes can result in regulatory fines or lead to cleanup and environmental tort liability. When an investigation for improper disposal occurs at a disposal facility, it can result in potential liability for all parties that manifested waste into the facility.

Waste Handling and Transportation

Waste container breaches or improper handling of hazardous waste may result in releases at the jobsite or storage location. Releases can also occur during loading and unloading operations and transportation to and from the jobsite to a disposal facility or storage location. During the cleanup of hazardous and non-hazardous materials, emergency response cleanup contractors may be required to transport and store this waste at their site or temporary storage facilities pending final disposal.

Chemical Application

At sites where emergency response activities are to be conducted, contractors may store, transport and use hazardous chemicals, disinfectants, deodorizers, and fungicides. Spills or leaks of these materials during storage, transporting, or loading and unloading operations can lead to cleanup liability for the contractor. At the cleanup site, chemicals used at improper application rates or concentrations, combined with other chemicals or incorrect delivery systems, can leave residues inside buildings, impacting human health by direct surface contact, inhalation, or can collect in run-off from outside surfaces.

Chemical Storage

Stored stock supplies, including chemicals used to clean and disinfect sites, are often in concentrated form. Container leaks of incompatible or reactive materials may cause a release of toxic gas or fumes (such as hydrogen chloride or ammonia) or generate enough heat for the combustion of nearby burnable materials.

Equipment Maintenance and Refueling

Equipment used during emergency response operations may be powered by diesel fuel and require petroleum-based hydraulic fluids and lubricants. Spills and leaks might occur during refueling or maintenance, contaminating jobsite soils and the business equipment yard.

Spill Containment

Fuel and chemical spills must be contained and cleaned up. Emergency response contractors may use sorbents, booms, socks, or spill pads when containing spills. Vacuum trucks may be used to recover liquid products. Waste materials recovered or generated at spill sites must be properly characterized and disposed of.

Wastewater Management and Run-off

Wastewater generated at work sites from wet solution cleaning procedures can contain contaminants such as silts, detergents, oil/grease, solvents, pathogens, biohazards, molds and mold spores, bacteria, flame retardants, and other toxic chemicals. Wastewater from these operations can create migratory pathways for contamination to flow on or off-site if recapture methods are not in place or the wastewater flows beyond recapture points. Releases may damage a private septic system, drinking water well, soil, or groundwater. Releases to a stormwater drain inlet or ditch may contaminate surface water and harm natural resources.

Wash Water Containment and Disposal

Untreated wash water generated from cleaning emergency response equipment and personal protective gear must be properly managed, contained, and disposed of to prevent it from being discharged into the sanitary sewer system and potentially contaminating and damaging the downstream wastewater treatment plant.

Remediation and Abatement Failures

Improper identification or the failure to completely identify and remove all contamination may result in inadequate recommendations and remedial actions, resulting in the spread of contaminants, residual hazards from incomplete abatement, additional remediation, tort liability, punitive damages, fines, and regulatory violations.

Contractors 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

Defense of third-party claims

First-party emergency response costs

Lead and asbestos

Mold, legionella, bacteria, and more

Natural resource damage

First and third-party transportation pollution liability

Loading and unloading

Non-owned disposal sites

Civil fines and penalties

Sudden and accidental coverage for owned/leased locations

Emergency response cleanup contractors may be able to combine Commercial General Liability, Contractors Pollution Liability, and Professional Liability into one package policy. Worker’s Compensation and Auto may also be offered.

Claims Scenarios & Examples

A spill occurred while delivering diesel fuel to a trucking company’s maintenance facility and flowed to an unpaved area. An emergency response contractor was hired to contain the spill and clean up the impacted soils. During excavations of the impacted soils, a backhoe hit a natural gas pipeline causing an explosion. Third parties filed bodily injury claims against the contractor and the owner, whose building was destroyed in the explosion. Claims exceeded $2.5 million.
An environmental response company responded to a fire at an agricultural supplier that damaged a building where containers of methyl bromide gas were stored. After the cleanup, the emergency response contractor stored the 14,000 gallons of purged acidic wastewater in a storage tank. The wastewater corroded an unlined valve in the tank, allowing the pollutant to escape and enter a nearby drywell. Approximately 2,300 gallons of wastewater were recovered. The contractor and the agricultural supplier were cited and fined for failing to place the wastewater in a container that was compatible with the material. They agreed to pay $39,330 to settle the hazardous waste violation.
During a response action, an emergency response contractor improperly labeled a sodium chlorate waste container. The drum was transported to a disposal facility to be incinerated. The sodium chlorate reacted with another chemical, causing an explosion and chemical fire. Cleanup costs and claims related to the incident exceeded $3 million.
An industrial facility spilled methyl ethyl ketone (MEK) from an aboveground storage tank into secondary containment. An emergency response contractor was hired to respond to the spill and remove the spilled chemical. The hose failed while transferring the chemical into a tanker truck, spilling the MEK into a nearby storm drain that discharged to an adjacent creek. The contractor was liable for the cleanup of the stream.
An emergency response contractor was transporting contaminated waste materials, with their trucks, from a response site to a disposal facility. One of the vehicles overturned and spilled waste materials into a local waterway. The spill resulted in fish kill and stream degradation. Cleanup costs exceeded $250,000.

Final Consideration

As a contractor you can be faced with the cost to defend yourself 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.

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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