ERP - Environmental Risk Professionals

Contaminant Migration

Spills or releases can occur during hazardous material cleanup activities. These could exacerbate existing contamination at the jobsite, migration of contamination off-site, or impacts to third parties.

Material Misidentification

Improper identification or failure to completely identify contaminants, hazardous materials, or hazardous wastes could release them into soil, groundwater, or air, leading to additional remediation, tort liability, punitive damages, fines, and regulatory violations.

Remediation Erosion and Run-off

Soil remediation activities may involve excavations that can disturb soils and leave them 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. Fugitive air emissions, such as dust, particulates, or volatile organic compounds, could also be released, resulting in third-party claims for bodily injury or property damage.

Jobsite Cleanup Failures

Failure to properly seal off, clean up, and decontaminate a jobsite can allow contaminants to spread beyond the original impacted area at a jobsite and lead to environmental cleanup and third-party liability.

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.

Wastewater Management

Vehicles and equipment used in hazardous materials cleanup may need decontamination and cleaning before driving on public roadways or removal from the site. Power washing or steam cleaning vehicles and equipment generates wastewater containing contaminants, oil and grease, suspended solids, phosphates, and detergents. Improper wastewater management may impact the site, neighboring properties, or surface waters, leading to cleanup, third-party bodily injury or property damage, fines, or natural resource damages.

Improper Disposal

A hazmat contractor may remove contaminated materials, including soil, debris, or water, and arrange for or transport the materials to a permitted off-site treatment, storage, and disposal facility. Improper disposal of contaminated materials or misdelivery of unidentified contaminated wastes can lead to environmental liability for the hazmat contractor.

Asbestos and Lead-Based Paint

Contractors performing cleanup of other hazardous materials may remove or encounter asbestos or lead-based paint in many residential, commercial, and industrial applications. During the hazmat contractor’s activities, existing asbestos or lead-based paint could be disturbed and released, resulting in third-party bodily injury claims or contamination of soils.

Underground Storage Tanks

When underground storage tanks (USTs) are removed, if tanks are not properly inerted and purged of harmful vapors before hot work, an explosion or fire can occur. Impacts to soil, groundwater, or stormwater and third-party bodily injury or property damage can occur.

Utility Locating

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.

Soil Contamination

If soil is not adequately characterized, disturbance, relocation, or stockpiling could result in unknown pre-existing contaminated soil being collected and spread to clean areas of a site. Cleanup claims, natural resource damage claims, or third-party suits could result.

Chemical Incompatibility

Incompatible hazardous materials or wastes could be mixed during a hazmat contractor’s activities, resulting in fires, explosions, or releases of toxic air emissions, which could contaminate a jobsite, impact neighboring properties, or cause bodily injury or property damage to third parties.

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

First and third-party transportation pollution liability

Mold, legionella, bacteria, lead, asbestos, and more

Sudden and accidental coverage for owned/leased locations

First-party emergency response costs

Hazardous materials cleanup contractors may be able to combine Commercial General Liability, Contractors Pollution Liability, and Professional Liability into one package policy. Workers’ Compensation and Auto may also be offered.

Loading and unloading

Non-owned disposal sites

Defense of third-party claims

Natural resource damage

Claims Scenarios & Examples

A manufacturing plant hired an environmental contractor to excavate, transport, and dispose of contaminated soil and concrete. The materials needed to be disposed of were separated into hazardous and non-hazardous containers and then transported to the respective disposal locations. While finalizing the report, the contractor realized they had mixed up two containers of broken concrete and mistakenly taken hazardous waste to the non-hazardous landfill. The contractor tried to rectify the issue, but due to the time that had passed, the landfill estimated that the waste was now buried under at least 60 feet of more waste. The state environmental agency completed a risk assessment, and the plant was fined over $100,000 for incorrectly disposing of hazardous waste. The plant then sued the contractor for the costs associated with the fine and legal fees.

A malfunction occurred at a hazmat contractor’s soil incineration plant that caused 761 pounds of ash to spread into a nearby neighborhood. The entire four-block radius around the incinerator was covered in ash, including homes and cars. Responders and investigators found high levels of metals in soil in and around the neighborhood. A class action suit was filed against the contractor.

The EPA hired a contractor to address the cleanup of an abandoned gold mine. The contractor was using heavy equipment when it accidentally breached a containment wall in the mine, causing the release of an estimated three million gallons of toxic sludge from the mine into a nearby river. The breach was eventually contained, but extensive cleanup of the river and its tributaries was needed.

An environmental contractor operated an incinerator to burn hazardous waste at a remote site. Due to cold, inclement weather at the project site, a makeshift tent was constructed to enclose the site equipment and office space. When a power failure caused the air pollution control equipment to shut off, a plume of hazardous air emissions entered the tent. Personnel from various on-site subcontractors were subsequently overcome with fumes and required medical attention. Settlement costs amounted to $635,000.

While performing remedial activities at a Superfund landfill site, a hazardous materials contractor inadvertently crushed several drums that were improperly classified as empty. As a result, several gallons of hazardous contents were subsequently released and caused localized soil contamination. Because the contractor failed to notify the EPA of the release, criminal and civil actions were brought against the contractor. The contractor was held liable under CERCLA and paid over $6.1 million in penalties.

A large industrial facility hired a hazmat contractor to remove the chemical waste. While consolidating and packaging the waste for transport and disposal to an off-site location, incompatible chemicals were mixed and caused an explosion. A toxic vapor cloud resulted, and the project site and nearby residential properties were contaminated as a result. Several third parties sued the contractor for bodily injury, physical damage, and cleanup expenses.

Contractors

Hazardous Materials Cleanup

Environmental Exposures May Include