Gasoline, diesel fuel, or heating oils may be stored at food processing facilities. Gasoline or diesel may be used to fuel delivery trucks or other fleet vehicles, and diesel or fuel oil may be used for building heating, steam production, or backup generation at food processing facilities. These petroleum products could be stored in aboveground or underground storage tanks. Releases can occur from storage tanks, piping systems, or during loading and unloading operations. These releases can impact soil or groundwater, migrate to surface water bodies or drinking water sources, or impact indoor air through vapor intrusion. Using diesel generators or boilers and idling diesel trucks can also generate diesel particulates, which are airborne carcinogens and pose health hazards to third parties.
Many food products, such as oil, milk, citrus, etc., can cause fish kills and impact water quality if released to surface water bodies. Cleanup and natural resource damage claims can result from impacts on surface water bodies.
Cleaning storage tanks and processing equipment may generate wastewater or sludge. Wastewater treatment systems may be present at facilities, or these waste materials may be taken to a non-owned disposal facility or wastewater treatment facility. Releases of insufficiently treated wastewater or spills could occur during cleaning, transport, or transfer from waste storage areas and create environmental risks. Improper waste disposal could lead to environmental liability or legal consequences for violating regulatory requirements.
Stormwater may come in contact with fueling areas, storage tanks, cleaning chemicals, bulk food storage, or solid wastes and become impacted by petroleum hydrocarbons, pollutants, or particulates. If stormwater is not properly controlled, contained, or pre-treated before discharge into sanitary or storm drainage systems, it can pollute soil and groundwater or discharge directly into surface waters, impacting human health and aquatic systems.
Refrigeration may be required for foods processed or stored. Refrigeration systems may use anhydrous ammonia, which can form a vapor cloud if released. Anhydrous ammonia, even in small concentrations in the air, can be extremely irritating to the eyes, throat, and breathing passages. Also, because ammonia boils at -28 degrees F, the expanding gas can potentially freeze human flesh. Therefore, a release could result in third-party bodily injury and property damage claims. Other chemicals used for refrigeration are often ozone-depleting substances. Releases of these can result in civil violations if not properly addressed.
Chemicals may be stored on-site for food additives, disinfection, equipment degreasing, or pest or rodent control. Spills or leaks from chemical storage areas could cause environmental risks, such as impacts to soil or groundwater or migration of contaminants in stormwater to surface water, causing damage to aquatic life or degradation of water quality.
Air emissions can emanate from boilers, vehicles, and powered equipment, such as forklifts, trucks, and cranes, which may be used at the manufacturing facility. Boilers and internal combustion vehicles are often powered by diesel or propane, which can emit carbon monoxide gas, leading to permit violations or third-party injury claims.
Accidental releases during transportation of fuels, chemicals, or food products to or from a food processing facility due to improper cargo securement, a loose valve, or vehicle upsets or overturns can result in claims for cleanup of the roadway and for soil, groundwater, or surface waters impacted by a release. Also, third-party claims could result in bodily injury or property damage from a release. Trucks loading and unloading at these facilities can also leak fuel or automotive fluids that could migrate or collect in stormwater.
Many manufacturing facilities, such as food processing plants, are in industrial areas. Contaminants from neighboring facilities could migrate to the food processor’s property. If the neighboring business owner is not properly insured or goes bankrupt, the cost of cleanup on-site could fall on the food processing facility. Additionally, the food processing facility could be drawn into third-party bodily injury and property damage claims related to contamination migrating beneath their site and impacting third parties.
Mold can develop from moisture intrusion due to storms or flooding from leaking water pipes, sprinklers, and HVAC systems. Many manufacturing buildings are flat-roofed, where pooled water can be absorbed by the roofing material and seep into sub-roof areas. Exterior insulation finishing systems can develop mold behind the exterior finishes. Additionally, mold can develop within HVAC systems or from improper building ventilation or humidity management of climate-controlled areas within the building. These mold conditions can lead to cleanup costs.
Illicit abandonment is the illegal dumping of pollutants on a property by a third party. It can become the burden of the facility owner for cleanup and third-party bodily injury or property damage if law enforcement cannot find the originator of the waste.
If there is inadequate security at a facility, vandalism can occur. Damage to facility equipment, including, for example, aboveground tanks or containers of chemicals, can result in environmental releases.
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 and property damage
Third-party claims for cleanup costs
Both sudden and gradual pollution conditions
Defense of third-party claims
Emergency response costs
Natural resource damage
First and third-party transportation pollution liability
Loading and unloading
Business interruption resulting from pollution conditions
Aboveground and underground storage tanks
Non-owned disposal sites
Crisis/reputation management
Civil fines and penalties
Mold, legionella, and more
Illicit abandonment
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.