Property Types

Golf Courses & Country Clubs

Golf courses and country clubs face environmental exposures from various operations and materials used and stored at the site. Aboveground and underground storage tanks for petroleum products and chemicals are typically used at these facilities and are often insured under a storage tank pollution policy. However, additional site risks could result in natural resource damage, environmental cleanup, and tort liability not covered under a tank policy. These can include the storage and application of pesticides and fertilizers; leaks of fuel and fluids from powered equipment; the storage, use, and disposal of hazardous materials; the generation, treatment, and disposal of wastewater; and mold and bacteria exposures at the facility.

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Environmental Exposures May Include:

Storage Tanks
Pesticides
Nitrogen and Phosphorus
Chemical Storage
Maintenance Equipment Leaks
Wastewater
Mold
Legionella
Illicit Abandonment
Waste Management

Storage Tanks

Underground and aboveground storage tanks typically store materials such as petroleum products (fuels, new and used oil) and chemicals. Leaks or a malfunction of equipment, pumps, valves, and pipes can cause a release of contents. Spills can also occur during the loading and unloading of material and wastes. Improper or no secondary containment can allow contents to leach into the underlying soils and groundwater, collect in run-off, or migrate off-site or into surface waters.

Pesticides

Pesticides covers a range of compounds, including insecticides, fungicides, herbicides, rodenticides, and others. Pesticides applied to a property can leach through soil and into groundwater or become mobile through run-off or drift and enter surface water or adjacent properties. Improper storage, mixing, and application of pesticides can cause leaks, spills, or overuse and result in environmental cleanup, third-party liability, and natural resource damage. Over-irrigation of the property or application close to stormwater exposure can also cause contaminated run-off.

Nitrogen and Phosphorus

Fertilizers are rich in nitrogen and phosphorus and are a nutrient pollution source. Water and soil containing nitrogen and phosphorus can collect in stormwater run-off, wash into nearby waters, or leach into ground waters, harming water quality and human health and causing excess algae blooms, damaging ecosystems and aquatic life.

Chemical Storage

Various materials are stored on-site for facility maintenance and operation, such as chemicals, commercial cleaners, parts washer solvents, paints, pesticides, lead-acid batteries for golf carts, and new and spent engine fluids such as antifreeze, motor oil, and brake fluid. Improper storage, spills, or mixing of incompatible chemicals could result in a violent reaction, corrosive damage, or the release of toxic vapors that pose an inhalation hazard to third parties.

Maintenance Equipment Leaks

Equipment such as mowers, aerators, tractors, and utility vehicles use fuels, oils, and hydraulic fluids and can experience a leak from a rupture or malfunction of parts or equipment rollover. Spills and leaks can also occur during on-site storage, maintenance, loading, and unloading of fuel and fluids into equipment.

Wastewater

Cleaning operations, including equipment, vehicles, and pesticide application equipment and containers, generate wastewater containing contaminants such as pesticides, oils, solvents, heavy metals, antifreeze, and solids that must be removed before discharge or disposal. Improper handling, containment, or wastewater treatment can contaminate septic or sewer systems. Wastewater discharged down floor drains, storm drains, or outdoors may cause environmental harm and violate federal and state law.

Mold

Mold growth can result from water and wastewater releases into building materials and subsurfaces due to leaks, overflows, poorly installed building materials, and blocked drains or pipes. Mold may also develop in water systems, such as refrigeration or HVAC, spa facilities, and water features due to improper maintenance, dehumidification, ventilation, or inadequate chlorination.

Legionella

Legionella is a bacterium that causes a form of potentially fatal pneumonia. Legionella can thrive in water-containing systems like air conditioning, heating and cooling, plumbing, misters, and water features. Poorly maintained systems and inadequate corrosion control or sanitization can result in Legionella growth and dispersal through mist and airborne droplets. Exposure can result in illnesses such as Legionnaires’ disease.

Illicit Abandonment

Illicit abandonment is the illegal dumping or abandoning of pollutants on a property. Cleanup and third-party bodily injury or property damage can become the property owner’s responsibility if law enforcement cannot locate the originator of the waste.

Waste Management

Businesses retain cradle-to-grave liability for their waste and must determine whether it is hazardous and requires special disposal or recycling procedures. Improperly segregated and disposed of wastes can result in regulatory fines or lead to cleanup and environmental tort liability. Wastes that can classify as hazardous include wastewater and sludge, solvent-soaked shop rags, used oil and antifreeze, lead-acid batteries, fluorescent bulbs, and pesticide waste, which can include leftover spray solutions and excess pesticides.

Environmental Pollution Liability Can Provide Coverage For

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

Both sudden and gradual pollution conditions

Aboveground and underground storage tanks

Non-owned disposal sites

Business interruption resulting from pollution conditions

First and third-party transportation pollution liability

Loading and unloading

Mold, bacteria, viruses, legionella, and more

Defense of third-party claims

Illicit abandonment

Natural resource damage

Silt and sedimentation

Civil fines and penalties

Claims Scenarios & Examples

A country club stored batteries in the maintenance area of the property. When a fire broke out in the storage room, battery acid and lead were dispersed and leaked into the ground. The EPA required an investigation, and contaminated soils had to be removed, and groundwater had to be treated. Remediation costs, legal expenses, and defense for the bodily injury claims due to fumes from the fire totaled $350,000. The General Liability carrier denied coverage due to the pollution exclusion on the policy.
A golf course hired a waste recycling and disposal company to dispose of the course’s spent solvents and golf cart batteries. When the recycling firm went bankrupt, they left behind waste chemicals and spent batteries on their property. The EPA required all waste generators to contribute to the cleanup and removal of the waste. As one of the waste generators, the golf course faced legal defense and a portion of waste removal and disposal costs. The General Liability carrier denied the claim due to the pollution exclusion on the policy.
An oil sheen was noticed on the surface of a retention pond at a golf course. During the investigation, investigators found that an aboveground storage tank containing fuel had rusted and started to leak. Costs to remediate and cover legal and investigation expenses were over $175,000. Due to the pollution exclusion, the general liability carrier denied the claim.
When two people contracted Legionnaires’ disease, it was traced back to a hot tub at a country club. The state’s Department of Health investigated and found the outbreak’s source was Legionella bacteria in the hot tub’s water. The two people who became sick had used the hot tub several times that month.
An environmental advocacy group accused a golf club and resort of discharging sewage into nearby surface waters without proper authorization. The group alleged that the resort’s soil absorption system, which collected sewage from the disposal system, conveyed the sewage and its pollutants through the groundwater and into surface waters. The golf resort was largely responsible for nitrogen pollution in the nearby harbor and bay.
A golf course stored chemicals, fertilizers, and pesticides in a storage house with a drain leading to a drywell. Over the years, small spills ran into the drain and, subsequently, the drywell. As a result, the groundwater and neighboring property were contaminated by the chemicals. The neighboring property owner sued the golf course for cleanup and diminution of property value. The EPA also investigated and required groundwater cleanup and the golf course storage house. The total cost was $450,000 for remediation expenses and liability.
A golf course had recently been sprayed with pesticides and herbicides. Soon after, a heavy rainstorm washed the chemicals into an on-site pond, negatively impacting protected species and wetlands. The EPA conducted investigations and assessed natural resources damages, and they ordered the restoration of the wetlands. The general liability carrier did not cover the claim, and $75,000 was spent on defense and investigation.
A golf course recently applied pesticides to the course, and a golfer placed his cigar on the grass of the tee box. When he picked it back up and smoked it, he severely reacted to the pesticides and died. A $1.4 million wrongful death settlement resulted.
The previous property owner installed an 18,000-gallon underground tank at a golf club to store heating oil. The tank experienced a leak when a line under the tank broke, and 1,200 gallons of remaining oil was released. A creek and retention ponds at the golf club were contaminated and had a fish kill. They had to be cleaned up, and the crew did a thermal treatment to ensure no contamination remained. The property owner covered all cleanup costs, and the underground tank was sealed off with concrete to prevent future leaks.
A luxury resort ran a golf course near a community lake for fishing and swimming. Stormwater run-off from the golf course would routinely flow into the lake. Over time, the lake became contaminated from the excess application of pesticides and herbicides on the golf course that would collect in the run-off that entered the lake. The environmental regulatory agency fined the golf course and ordered immediate lake cleanup.

Final Consideration

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.

Disclaimer

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

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