Waste Management
Waste generation, such as scrap metal, coolant, used oil, solvent, paint, adhesives, coatings, and other waste materials, may be generated by fabrication operations and can be considered hazardous. Improper storage and handling of wastes can lead to releases that may cause contamination. Additionally, waste generators are responsible for determining if their wastes are hazardous and require special disposal or recycling procedures. Waste generators retain “cradle to grave” liability for their disposal of wastes, and improper characterization and disposal can result in regulatory violations and environmental liability.
Modification Malfunctions
Fabrication contractors may make modifications to design specifications while at a jobsite. Malfunctions arising from these inputs/changes create a direct professional responsibility for the contractor.
Wastewater
Wastewater from fabrication operations can contain metals, oils, grease, solvents, detergents, suspended solids, and other pollutants. If wastewater is not properly contained, it could migrate to soil, impacting vegetation and potentially entering groundwater supplies. It could also enter interior drains or sumps, discharge into the sewer system, and potentially impact publicly-owned treatment works systems.
Accidental Spills
Accidental spills of hazardous substances, such as oils or solvents, can lead to soil pollution. Contamination of soil with hazardous substances can negatively impact soil quality, leach into groundwater, or be absorbed by plants. Cleanup costs, bodily injury, and property damage claims could result.
Design Errors & Omissions
Contractors may provide design services or input on a design that can result in professional liability. Design services may include performing in-house fabrication design, hiring design firms as subcontractors or through a joint venture, or providing professional opinions on design aspects. Errors and omissions can delay time, overrun budgets, and result in rework.
Fumes or Dust
Welding, brazing, and cutting can generate fumes and vapors that contain metals, carbon dioxide, carbon monoxide, ozone, fluorides, and other chemical components that can adversely impact health. Dust can be generated from grinding activities. If the area where these operations are performed is not properly vented, or fumes or dust are vented to areas where they are drawn into neighboring HVAC systems, third parties could be exposed to the fumes or dust, resulting in bodily injury claims.
A Combined Pollution & Professional Liability Policy 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-party emergency response cost
Mold, legionella, bacteria, fungi, lead, asbestos, and more
Sudden and accidental coverage for owned/leased locations
Non-owned disposal site liability
First and third-party transportation pollution liability
Loading and unloading
Silt and sedimentaton
Mitgaton/rectification
Excess/contingent design
Defense of third-party claims
Natural resource damage
Claims Scenarios & Examples
