Mold Growth
Improper installation of EIFS can lead to mold growth. Gaps, cracks, or poorly sealed joints can allow water to penetrate behind the EIFS. In areas with high humidity, condensation can form on the interior surfaces of the EIFS, especially if there is a significant temperature differential. EIFS should include drainage provisions to allow any water infiltrating the system to escape. If moisture becomes trapped within the EIFS layers due to poor drainage systems or inadequate ventilation, it creates an environment conducive to mold growth. Mold growth could lead to third-party claims and cleanup costs for the contractor.
Concrete & Masonry Hazardous Materials
Concrete or masonry products may be used during substrate preparation. These products may include hazardous materials, such as sealants, etchants, coatings and emulsions, mortar admixtures, acids, chemicals used in the hardening of concrete, and cleaning chemicals for masonry and equipment. Spills, improper storage, and contact with stormwater can cause contamination of surface water, groundwater, and soils.
Volatile Organic Compounds (VOCs)
Some materials used in EIFS, like adhesives and coatings, may contain volatile organic compounds (VOCs) or other harmful substances. Accidental spills and leaks of adhesives, sealants, solvents, and cleaners at the jobsite, location of storage, and during transportation may cause third-party exposures and cleanup. Some products are flammable and may result in a fire that spreads and releases other contained materials and produces hazardous vapors.
Waste Management
Improper waste disposal can lead to cleanup costs and environmental tort liability. Materials such as sealants, adhesives, and solvents may be classified as hazardous waste and require special disposal procedures. Hazardous waste may also be inadvertently mixed with leftover pieces of insulation board, broken or damaged panels, and excess base coat or finish coat and disposed of improperly. Investigations for improper disposal at a disposal facility can result in potential liability for all parties that manifested waste to the facility.
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
First and third-party transportation pollution liability
Loading and unloading
Misdelivery of liquid products
Non-owned disposal sites
Mold, legionella, bacteria, and fungi
Lead and asbestos
Sudden and accidental coverage for owned/leased locations
First-party emergency response costs
Natural resource damage
Defense of third-party claims
Claims Scenarios & Examples
