Contractors

Grease Trap Servicing

CPL

Grease traps, or interceptors, are often located at restaurants, cafeterias, and other food service businesses. Contractors who service grease traps and transport the waste to treatment facilities face environmental risks. Grease traps contain waste fats, oils, and greases (FOG) that must be pumped out as part of a regular maintenance program to keep them in good working order. Collected wastes must be properly recycled or disposed of at rendering plants, wastewater treatment plants, recycling facilities, or other facilities. Grease trap contractors can face environmental liability for improper handling or disposal of wastes they collect or generate. FOG accidents or leaks while servicing grease traps or transporting, loading or unloading, treating, or storing wastes can impact drinking water sources, surface water bodies, or sensitive habitats. Improper maintenance of trap systems by contractors could also result in contaminant releases.

Download PDF

Environmental Exposures May Include:

Accidental Releases During Transport
Waste Management
Sewer Overflow
Loading & Unloading
Storage Tanks
Wastewater

Accidental Releases During Transport

During the transportation of grease trap wastes, a vehicle upset, overturn, or equipment malfunction can occur, resulting in spills or releases that cause environmental damage requiring cleanup.

Waste Management

Grease trap wastes may be recycled or taken for disposal. Some recycling facilities solidify the waste and then sell it to agriculture for use as a fertilizer on fields or as compost. Other facilities separate the brown grease from water to produce biodiesel fuel. Some wastes are disposed of at wastewater treatment plants or landfills. Improper recycling or disposal procedures or spills or leaks while unloading at a recycling or disposal site could threaten human health and the environment, resulting in cleanup and tort liability.

Sewer Overflow

Maintenance may be performed on grease traps at a customer’s business. If the work performed by a service contractor results in a malfunction of the grease trap system, a sewer system overflow could cause bodily injury, property damage, or environmental impacts. The contractor could be liable for the cleanup and tort liability resulting from the sewer backup. Even if the service contractor is not at fault for the sewer backup, they may be drawn into a lawsuit and be required to defend themselves.

Loading & Unloading

During servicing, companies pump out waste liquids and solids from grease traps. Spills during loading or unloading can occur, and FOG, bacteria, and other debris can migrate to storm sewers, drywells, surface water bodies, or adjacent properties. Impacts on aquatic life, natural resource damages, contamination of drinking water sources, or property damage can result.

Storage Tanks

Grease trap servicing companies may store or treat grease trap wastes at their facilities and incur pollution liability exposures at these sites from leaks or spills of wastes. They may store these wastes in underground structures, tanks, or aboveground storage tanks. Leaks or spills from these tanks or structures could cause environmental damage.

Wastewater

Wastewater generated from treatment operations, cleaning vehicles, or equipment may be contaminated with FOG, bacteria, bleach, detergent, and chemicals. Mishandling of wastewater generated at these facilities can also result in cleanup or tort liability. In addition, stormwater coming into contact with waste can contaminate storm drains, surface waters, or nearby third-party properties.

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

Defense of third-party claims

First-party emergency response costs

Sudden and accidental coverage for owned/leased locations

Mold, legionella, bacteria, and fungi

First and third-party transportation pollution liability

Underground storage tank and aboveground storage tank liability

Loading and unloading

Non-owned disposal sites

Natural resource damage

Lead and asbestos

Silt and sedimentation

Claims Scenarios & Examples

A grease trap service contractor had a full truck and was driving on a winter day. Ice on a bridge caused the truck to slide and flip over, spilling the truck’s contents into the creek below. The contractor was liable for the cleanup costs for the roadway and creek.
A grease trap service contractor was responsible for regular maintenance on a grease trap for a large restaurant. The incoming line to the grease trap clogged due to a foreign object, causing sanitary water to back up into the restaurant, resulting in property damage, food contamination, and business interruption. The restaurant owner sued the contractor, even though his work was not the cause of the backup. The grease trap service contractor’s pollution liability policy defended him against this claim.
Grease trap waste was pumped into a tank at the contractor’s facility. The tank failed, and a stormwater drain in the secondary containment had been left open. Wastewater and solids escaped the secondary containment and flowed onto an adjacent property. The adjacent property owner sued for property damage associated with the release.
While pumping out a grease trap at a restaurant, the hose connection came loose, spilling the grease trap waste onto the ground and into a nearby storm drain. The wastes flowed into an adjacent stream. The contractor incurred emergency response and long-term monitoring costs for impacts to the stream.

Final Consideration

As a contractor you can be faced with the cost to defend yourself 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

Download PDF