ERP - Environmental Risk Professionals

Underground Utilities

Before excavation activities, failure to properly locate underground utilities such as gas lines, water, and sewage pipes, or unknown hazards such as septic tanks could result in striking a line or causing an accidental puncture and release of pollutants such as natural gas, fuels, or sewage.

Contaminated Soil

Disturbance, relocation, or stockpiling of soils could result in unknown pre-existing contaminated soil being collected and spread to clean areas of a site or improperly disposed of. Cleanup claims, natural resource damage claims, or third-party suits could result. Improper disposal of contaminated materials or misdelivery of unidentified contaminated fill can lead to environmental liability.

Silt & Sediment

Silt and Sediment are fine-grained soil particles readily carried in surface run-off. Restoration activities, such as those that involve any excavation or grading of land or use of heavy equipment, can disturb and leave the soil highly vulnerable to erosion by wind and water. Improper erosion control can lead to surface run-off of these soil particles, impairing the proper functioning of stormwater drainage systems, causing ecological damage to streams and rivers, and causing adjacent property damage. Control of silts/sediments is required under the Clean Water Act, and contractors may face regulatory action such as cleanup orders or fines and penalties from federal, state, or local regulators. Fugitive air emissions, such as dust and particulates, could also be released, resulting in third-party claims for bodily injury or property damage.

Errors & Omissions

Contractors may make modifications to design specifications while at a jobsite. Errors and omissions resulting from these modifications can create professional liability exposure for the contractor.

Off-Site Disposal

Contaminated materials, including soil, debris, or water, can be moved from the jobsite and transported to a permitted off-site treatment, storage, and disposal facility. Improper disposal of contaminated materials or misdelivery of unidentified contaminated fill can lead to environmental liability.

On-Site Equipment Fluids

Equipment brought to and stored on a jobsite may be powered by diesel fuel and require petroleum-based hydraulic fluids and lubricants. Release of fluids can occur from leaks or spills during refueling, maintenance, or transport to and from a jobsite.

Pesticides

Pesticides, herbicides, or other chemicals may be used to control invasive plant species. Spills or releases related to these chemicals or overapplication can lead to environmental liability. Herbicides and chemicals can be carried in the wind off-site to unintentionally affect neighboring properties leading to third-party suits.

Asbestos & Crystalline Silica

Naturally occurring asbestos and crystalline silica are present in certain rock formations and veining in other mineral deposits and can be accessed during trenching and excavation. Once these materials are freely available at the surface, individuals can be exposed by inhalation of dry particulates. Disposal or reuse of these materials off-site can further contaminate other locations and individuals.

Wash Water

Vehicles and equipment used in habitat restoration may need cleaning before driving on public roadways or removal from the site. Power washing or steam cleaning vehicles and equipment generate wastewater containing oil and grease, suspended solids, phosphates, and detergents. If the wash water is not properly managed, contaminants may impact surface waters and violate water quality standards.

Subcontractors

Proper selection and supervision of subcontractors can be a professional exposure for habitat restoration contractors, who may be required to defend themselves against claims relating to work performed by subcontractors.

Design Risks

Habitat restoration companies may provide design services that can result in professional liability. This may include design work, permitting, planning activities, surveys, inventories, and mapping. Associated errors and omissions can result in unintended impacts on ecosystems, additional project costs, or delays.

A Combined Pollution & Professional Liability Policy Can Provide Coverage For

Contracting operations performed at a jobsite

Contracting operations completed “by or on behalf of” the insured

Third-party claims for bodily injury and property damage

Third-party claims for cleanup

First-party emergency response cost

Sudden and accidental coverage for owned/leased locations

Non-owned disposal site liability

First and third-party transportation pollution liability

Loading and unloading

Natural resource damage

Silt and sedimentation

Defense of third-party claims

Rectification/Mitigation of Damages

A combined Commercial General Liability, Contractors Pollution Liability, and Professional Liability package policy may be available. Worker Compensation & Automobile policies may be offered.

Claims Scenarios & Examples

During restoration implementation activities, a habitat restoration contractor unknowingly spread soil contaminated with petroleum across a project site. When a lawsuit was filed, the contractor was found responsible for exacerbating the extent of the contamination and faced $250,000 in cleanup and defense expenses.

A contractor was working on a habitat restoration project. The contractor accidentally hit an unmarked petroleum pipeline during excavation, releasing petroleum into subsurface soil and groundwater. The contractor faced over $500,000 in cleanup costs.

A contractor was working on a habitat restoration project when a natural gas line was hit during excavation. The immediate area had to be evacuated, including a strip mall that neighbored the property. The contractor faced loss-of-business claims from the store owners over $75,000. The contractor filed the claims with their General Liability carrier, but the claims were denied due to the Total Pollution Exclusion on the policy.

A contractor was working on a habitat restoration project and used an herbicide to help control an invasive species found in the area. However, the herbicide was applied to ponded water, which was against instructions. Soon after the herbicide was applied, a rainstorm occurred, and the ponded water migrated into a river tributary. The EPA fined the contractor as they were found in violation of the Clean Water Act and the Federal Insecticide, Fungicide, and Rodenticide Act.

Before a site was developed, a habitat restoration company was hired to conduct a biological resource survey to check for drainages that could be subject to government jurisdiction under the Clean Water Act. During site preparation, excavated soil was placed in a drainage ditch adjacent to the site that was not part of the biological resource survey. The ditch was subject to the Clean Water Act, and the site owner faced fines from the state. The owner sued the site work contractor and habitat restoration company to recover the fines and attorney fees. The habitat restoration company fought the suit and faced defense expenses.

A habitat restoration company was hired to create a plan for constructing, restoring, and maintaining a site. As part of the plan design, they conducted surveys to identify potential environmental impacts at the site. During construction, an endangered bird species was discovered to be nesting on the site. This species was not identified in the original survey, and it was determined the current plans would threaten the bird. As a result, there were project delays and construction costs, and additional planning had to be done. The habitat restoration company faced professional liability claims.

Habitat restoration work was being completed on a site when excess silting from excavation and site work occurred in a neighboring potable lake. Damage to the lake resulted in third-party claims.

Contractors

Habitat Restoration

Environmental and Professional Exposures May Include