Property Types

Grocery Stores

Grocery stores can face many environmental exposures from their store operations, as well as from the property that they occupy. Releases or leaks of chemicals and other hazardous materials used and stored on-site could contaminate soil and groundwater or migrate in run-off to surface waters. These materials could also impact indoor air quality and other pollutants, such as mold and bacteria, leading to third-party claims. Since pollution laws are joint and several, cleanup liability could be imposed on a grocery store chain that operates or owns a contaminated property without regard to fault. Additionally, environmental liabilities can result from mold, asbestos-containing materials (ACM), polychlorinated biphenyls (PCBs), or lead-based paint (LBP) present in the building where the store is operating.

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Environmental Exposures May Include:

Legacy Contamination
Mold
Legionella
Asbestos
Indoor Air Quality
Fluid Leaks and Run-off
Pesticides, Insecticides and Rodenticides
Grease Trap Systems
Refrigerants
Generator Emissions
Illicit Abandonment
Waste Management
Storage Tanks
Chemical Storage

Legacy Contamination

Historical uses of a grocery store site could have included commercial or industrial facilities that adversely impacted the site. Contamination from off-site sources can migrate onto a grocery store’s property. Environmental cleanup, third-party bodily injury, and property damage claims could fall on the grocery store owner.

Mold

Mold growth can result from water and wastewater releases coming into contact with building materials due to leaks, overflows, and blocked drains or pipes. Mold may also develop in other water systems, such as refrigeration or HVAC systems and water features.

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 systems, and water features. It can accumulate in warm, stagnant, pooled, or infrequently drained water. Poorly maintained systems and inadequate corrosion control or sanitization can result in Legionella exposure.

Asbestos

Older buildings may have asbestos-containing materials (ACM), polychlorinated biphenyls (PCBs), or lead-based paint (LBP). ACM can be found in ceiling and floor tiles, insulation around wiring, fireproofing, and roofing materials. PCBs can be found in window caulk, light ballasts, or transformers. LBP could be present on interior or exterior surfaces. Bodily injury claims could result from accidental disturbance or alleged exposure during renovation, construction, or remodeling.

Indoor Air Quality

“Sick Building Syndrome”, where inhabitants suffer health problems while in a building, is often attributed to poor building design, maintenance, or a faulty ventilation system. Along with asbestos, lead, mold, and bacteria, other exposures that can contribute to sick building syndrome include chemicals stored on-site for routine cleaning and building maintenance, combustion products such as carbon monoxide, chemicals used for pest control, and volatile organic compounds, which may be released from many consumer products.

Fluid Leaks and Run-off

Leaks from delivery trucks of fuels, oils, and other automotive fluids on the property can leach into the ground or discharge into water systems by run-off or collection in stormwater. Run-off from paved surfaces, such as parking lots, can collect fuel, oil, and chemicals and discharge them into water systems.

Pesticides, Insecticides and Rodenticides

Leaks, spills, or over-application of pesticides, insecticides, and rodenticides can contaminate soil, surface water, or groundwater, impacting adjacent properties and stormwater run-off. Inadequate ventilation or insufficient time before re-occupation can affect third parties.

Grease Trap Systems

Some grocery stores may have food preparation facilities and associated grease traps. Leaks or spills can occur from poor maintenance or during the loading and unloading of grease wastes, resulting in soil or groundwater impacts, clogged sewer lines, or discharges to storm drains. Hydrogen sulfide gas and odors can build up, or stagnant water mixed with food and grease can form sulfuric acid, which can corrode the grease trap and associated piping. Cleanup claims, third-party bodily injury or property damage suits, or natural resource damages could result.

Refrigerants

Refrigeration systems, chillers, or walk-in coolers are often present at grocery stores. These units may use chemicals, such as ammonia, hydrofluorocarbons (HFCs), or chlorofluorocarbons (CFCs), and their release can cause serious health hazards to third parties, including respiratory illness and even death.

Generator Emissions

Heating systems and emergency generators may be present. Diesel generators and boilers can create diesel soot or particulate, an airborne carcinogen. Additionally, incomplete combustion of fuels in heating systems and generators can produce carbon monoxide, which can cause serious respiratory issues, including asphyxiation.

Illicit Abandonment

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

Waste Management

Grocery stores may generate hazardous or regulated wastes that require special handling and disposal procedures. Improperly segregated and disposed of wastes can result in regulatory fines or lead to cleanup and environmental tort liability. Wastes include fluorescent light fixture ballasts, fluorescent light tubes and bulbs, paints, paint and floor strippers, solvent-soaked rags, used oil, and construction debris containing asbestos, lead, or PCBs.

Storage Tanks

Above and underground storage tanks may be at grocery store locations for heating oil, diesel fuel for generators, or fuel storage for gas stations. Leaks or spills from the tanks, piping systems, or during loading and unloading can contaminate soil and groundwater and pollute stormwater run-off.

Chemical Storage

Grocery stores may use and stock materials containing chemicals, such as automotive, cleaning, and lawn care products. Leaks or spills from improper handling or storage could result in environmental liability.

Contractors 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

Mold, bacteria, viruses, legionella, and more

Business interruption resulting from pollution conditions

First and third-party transportation pollution liability

Loading and unloading

Defense of third-party claims

Illicit abandonment

Natural resource damage

Claims Scenarios & Examples

A mold issue at a grocery store affected the breathing of employees and patrons. An inspection of the building found mold, mildew, and holes in the ceiling. The store owner failed to properly maintain the roof, seeping water into the building. Third-party bodily injury claims were filed against the store.
A refrigeration contractor was fixing a refrigeration unit leaking Freon at a grocery store. While conducting the repairs, the leaking pipe ruptured. Oil was sprayed into the face and eyes of the repairman. Additionally, several customers complained of breathing issues related to Freon inhalation. The repairman and the customers filed bodily injury suits.
A grocery store chain renovated a vacant existing building. After several months of occupancy, the store employees complained of headaches, nausea, and other illnesses. After further investigation, the state environmental agency and an environmental engineer determined that the problem was vapor intrusion. Gasoline vapors from contaminated groundwater originate from a leaking underground storage tank (LUST) from a defunct gas station next door. While addressing the vapor intrusion issue, the grocery store had to be shut down. The store owner was liable for hundreds of thousands of dollars in lost income, cleanup, and property improvements.
An unknown third-party dumped methamphetamine lab waste in a grocery store parking lot at night. The next morning when employees arrived, they noticed the containers and contacted the local fire department. Local Hazmat crews arrived and discovered that the containers contained extremely hazardous waste, resulting in costs to properly dispose of the hazardous waste at an appropriate disposal site.
The grocery store owner also operated a gas station at the site. A leak occurred in one of the gas station’s underground storage tanks. The petroleum contamination from the leak contaminated soil and groundwater and migrated off-site. The grocery store owner incurred significant remediation costs and associated defense expenses.
An ultrasonic mist machine was used by a grocery store in the produce section. Approximately 33 patients were hospitalized with Legionnaires’ disease, which was connected to a buildup of dangerous bacteria in the reservoir of the mist machine.
Floor drains separated from the sanitary sewer lines at a grocery store were discovered during renovations. The defective sewer system caused over $750,000 in remediation costs.

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 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.

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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