Petroleum Product Mixtures
Fuel oils are petroleum products used in many types of engines, lamps, heaters, furnaces, and stoves, and they’re used as solvents. Fuel oils are mixtures of aliphatic and aromatic petroleum hydrocarbons. In addition, they may contain small amounts of nitrogen, sulfur, and other elements as additives.
Leaks and Spills
Home fuel oil spills can occur when basement storage tanks are overfilled, an attempt is made to fill a tank that has been removed, a tank has overturned in a flooded basement, or fuel oil is accidentally put into a septic tank vent or well casing. Leaks and spills can also result from delivery personnel not following proper filling procedures and not checking to fill and vent lines for obstructions.
Misdelivery
Misdelivery of fuel oil to fill a tank that has been removed in homes that have converted to propane or natural gas can pump fuel into the basement with no tank to receive it. Fuel oil can also be misdelivered to the wrong address resulting in extensive property damage and cleanup and potential third-party bodily injury liability.
Vapors
Breathing fuel oil vapors in an enclosed space like a basement can cause short-term symptoms, including nausea, dizziness, and eye, nose, or throat irritation. Getting fuel oil on the skin can cause skin irritation. Some individuals, like those with asthma or another lung disease, may be more sensitive to these effects than others. Even at low concentrations, the strong odor of fuel oil can still make many people feel ill. Long-term exposure to fuel oil odors in the home (exposure for many years) has the potential for more serious health problems. These include liver and kidney damage, increased blood pressure, other blood problems, and cancer.
Structural Damage and Contaminant Seepage
Fuel oil spills inside a basement or structure can flow through a floor drain or crack, contaminate a drinking water well, ruin a septic system, penetrate concrete blocks, create odor problems, or enter a sump system. Fuel oil that has soaked into concrete floors and wood support beams or has had time to flow into cracks or drains and get beneath floors and walls can result in extensive property damage and cleanup liability. If fuel oil seeps through cracks in the floors, drain tile systems, or sump pumps, environmental remediation may be needed, including collecting soil and groundwater samples and cleanup of contaminated soil or groundwater.
Loading and Unloading
Accidents or leaks of fuel oil during transportation and loading/unloading can be hazardous to the environment and human health. Fuel oil spills can seep into soil and groundwater, stormwater drains, sewers, and adjacent properties, damaging natural resources and posing human health hazards. The volatile fuel components can also migrate from soil and groundwater through the soil column, creating a vapor intrusion issue to surrounding buildings and affecting the occupants.
Fuel Oil Disposal
Home heating oil service may involve the disposal of fuel from the cleanup of a spill or removal from a tank. Fuel oil must be properly disposed of or recycled.
Residual Contaminant Liabilities
Discarded fuel oil and propane tanks may contain residual oil and gas, requiring proper removal and disposal. Old furnaces, water heaters, or expansion water tanks from a steam system might also have hidden asbestos, which at one time was widely used for insulation because it was so resistant to heat.
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
Loading and unloading
Misdelivery of liquid products
Non-owned disposal sites
Mold, legionella, bacteria, and fungi
Lead and asbestos
Sudden and accidental coverage for owned/leased locations
First-party emergency response costs
Natural resource damage
Defense of third-party claims