ERP - Environmental Risk Professionals

Accidental Puncture of the Underground Hazards

Underground utilities, including gas lines, water and sewage pipes, and unknown hazards beneath the surface (such as abandoned storage tanks and septic tanks), can be struck by equipment. An accidental puncture and release of fuels, chemicals, toxic gases, or sewage can contaminate soil and groundwater and release hazardous air emissions, resulting in cleanup costs, bodily injury, and third-party property damage claims.

Vehicle accidents

Vehicle accidents involving rollovers or upsets on highways could cause the release of excavated materials. Contaminants in excavated soils may migrate to soil, groundwater, or surface waters. Spilled soil, rock, and other materials can also impact stormwater drainage systems or harm aquatic life.

Excavating Contaminated Soil

Excavating contaminated soil requires proper containment and dust control, hauling in covered dump trucks, and disposal at approved treatment, storage, or disposal facilities. Equipment must be thoroughly cleaned before leaving the site. Inadequate procedures can cause contamination migration, leading to cleanup and third-party injury or property damage claims.

Asbestos and Crystalline Silica

Naturally occurring asbestos and crystalline silica are present in some rock formations. These materials can become airborne as fibers or dust during trenching and excavation. Once disturbed, they may expose workers and third parties to inhalation hazards. Improper disposal or reuse off-site can also cause contamination or harm.

Contaminated Soil or Solid Waste

Contaminated soil or solid waste may be transported to off-site treatment or disposal facilities. Some media require pre-treatment to comply with land disposal restrictions. Improper disposal or misdelivery of unidentified contaminated fill can lead to environmental tort liability or regulatory violations.

Silt and Sediment

Silt and sediment are fine soil particles that can migrate in run-off during rain events, water line breaks, or dust control watering. Bare ground during construction leaves soil vulnerable to erosion. Inadequate control can cause run-off that clogs stormwater systems, damages streams, and leads to regulatory fines or cleanup orders under the Clean Water Act.

Accidental Spills or Leaks

Heavy equipment and portable refueling tanks may be brought to the jobsite. Accidental spills or leaks of fuels, lubricants, oils, or chemicals—or vandalism—can discharge pollutants into the environment and require cleanup.

Pre-existing Contaminated Soil

Pre-existing contaminated soil could be unknowingly excavated and spread to clean areas, or create liability during transportation and disposal.

Fugitive Dust and Particulates

Fugitive dust and particulates can occur during excavation and hauling. Inadequate containment measures can lead to third-party bodily injury or property damage.

Dewatering Activities

Dewatering activities can impact groundwater and surface water. Untreated water from dewatering operations may contain sediment or other pollutants from the site. Improper discharge can erode soil, spread contamination, or pollute nearby lakes, wetlands, or storm drains.

Claims Scenarios & Examples

An industrial site was demolished to develop a new shopping mall. After the demolition, an excavation and grading contractor unknowingly spread asbestos-contaminated soil over most of the property. Approximately $500,000 was spent to remove and dispose of the contaminated soil.

As part of constructing a new office building, an excavation contractor gathered several tons of soil contaminated with polychlorinated biphenyls (PCBs), placed it in containers, and loaded it onto a truck for off-site disposal. One of the trucks overturned on an icy road, and several containers fell out and broke open, spilling contaminated soils onto the ground surface. The spill caused a road closure for several hours. The excavation contractor was held responsible for the emergency hazmat cleanup of the spilled soil.

After failing to identify a sewer line before drilling, a subsurface drilling contractor caused a release of raw sewage, contaminating soil and groundwater and reaching the basements of several nearby businesses. The cleanup included excavating several tons of impacted soil and caused several nearby businesses to be shut down until the cleanup was complete. The breach caused several claims for business interruption and cleanup costs.

A grading contractor was working on a site preparation project. During rough grading, the contractor spread soil throughout the site as directed by the engineer’s specifications; however, the contractor unknowingly spread a pocket of a highly concentrated contaminant. As a result, 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, and the cost of cleanup was $1 million.

An excavation and grading contractor was hired to perform grading operations for the roads of a new subdivision. The contractor followed the engineering plans; unfortunately, the plans were incorrect and led to the construction of an improper slope. With the first rainstorm, stormwater entered the basements of several homes in the subdivision, resulting in property damage and mold growth. The contractor was sued and spent approximately $100,000 on defense costs before the lawsuit was eventually dismissed.

An excavation subcontractor was working on a sewer installation project. The contractor tied the piping improperly, sewage leaked into the ground, and bacteria migrated into the surrounding groundwater. As a result, residential wells were contaminated. The contractor faced indemnity and defense costs from the bodily injury and property damage claims filed by the residential community.

An excavation contractor was hired to remove and dispose of contaminated soil at a construction site. Before starting the work, they were told by the city that the utilities had all been shut off. During excavation, they hit a water main that was supposed to be inactive; however, upon impact, it released thousands of gallons of water and contaminated soil into the city street and storm drains. Eventually, the water was shut off, and the city street was shut down overnight for cleanup. The cleanup costs totaled $3.4 million, including the cost of the emergency response measures.

A contractor was hired to work on a $500,000 sewer rehabilitation project. While doing trench excavation work, a backhoe hit a natural gas line. The immediate area was forced to evacuate, which included a small strip mall. The store owners filed claims for loss-of-business, totaling over $75,000. The contractor filed the claim with their General Liability carrier, which was denied because of the policy’s Total Pollution Exclusion.

An excavation/grading contractor was working on a housing project and unknowingly spread petroleum-contaminated soil across a project site during fill operations. The contractor was named in a lawsuit for contributing to the extent of the contamination. After deliberations, the contractor was eventually removed from the lawsuit; however, he had invested $250,000 in his defense.

An excavation contractor ruptured an unmarked petroleum pipeline. As a result, its contents were released into the soil and groundwater. The contractor was responsible for cleanup and business interruption expenses exceeding $500,000.

An excavation contractor installed a new water main through a nationally protected area. The excavation resulted in excessive silting into a lake used for potable water. The park authority filed a claim against the contractor for damage to the lake.

Contractors

Excavation & Grading

Environmental Exposures May Include: