ERP - Environmental Risk Professionals

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, hot tubs, plumbing 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 growth and dispersal through mist and airborne droplets. Exposure can result in Legionnaires’ disease and Pontiac Fever, severely complicating existing respiratory diseases.

Mold Growth

Mold growth can result from water and wastewater releases into building materials and subsurfaces due to leaks, overflows, poorly installed building materials, and blocked drains or pipes. Mold may also develop in water systems, such as refrigeration or HVAC, and indoor pools, spas, and water features due to improper maintenance, dehumidification, ventilation, or inadequate chlorination. Mold exposure may pose health hazards to building occupants, including severe respiratory issues and systemic toxicity, and mold can absorb into building materials and create cleanup liability.

Sick Building Syndrome and Indoor Air Quality

“Sick Building Syndrome” can occur when occupants suffer health problems while in a building. Along with lead, mold, and bacteria, other exposures include chemicals stored on-site or found in building materials, combustion products such as carbon monoxide, or volatile organic compounds emitting from various sources, including routine cleaning and building maintenance.

Maintenance Chemical Application

Pesticides, herbicides, and insecticides can be applied at the facility and for landscape maintenance. Overuse, misapplication, spills, or containment leaks can contaminate soil, surface, or groundwater and collect in stormwater run-off. Inadequate ventilation or insufficient time before building re-occupation can affect third parties with respiratory issues, headaches, nausea, or systemic toxicity.

Illicit Abandonment

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

Hazardous Waste Identification and Disposal

Collected wastes can contain hazardous materials that require special 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, lead-acid batteries from golf carts, and construction debris containing asbestos or lead.

Pool and Spa Maintenance

Improper maintenance, filtration, and sanitation of pools, spas, and water playgrounds can create a breeding ground for legionella and other dangerous bacteria and viruses. Misuse, over-application, improper storage, and releases of pool treatment chemicals can also create cleanup liability and health hazards to third parties from inhalation, ingestion, or dermal contact.

On-Site Chemical Storage

Hazardous chemicals stored on-site could include chlorine, ammonia, cleaning solvents, and pesticides. On-site amenities such as dry cleaners, laundry operations, and golf courses also use and store hazardous chemicals. Incompatible chemicals stored together or mixed can react violently or produce toxic byproducts/gases. Flammable products could result in a fire that produces hazardous vapors. Containment breaches, spills, or improper handling can lead to cleanup or tort liability.

Lead and Asbestos

Older facilities may contain lead or asbestos. Lead may be found in paint or pipes. Asbestos-containing material may be in insulation, piping, ceiling and floor tiles, mastic, furnaces, boilers, and fireproofing insulation. Tort claims may result from accidental disturbance or alleged exposure during repair work, renovation, construction, or interior remodeling.

Restaurant Waste and Refrigerants

Leaks or spills from restaurant grease traps due to poor maintenance or during loading and unloading grease wastes can contaminate soil or groundwater, clog drains or sewer lines and expose bacteria and infectious diseases to third parties. Restaurant refrigeration systems can also pose serious health hazards to third parties by releasing hazardous chemicals such as ammonia, hydrofluorocarbons (HFCs), or chlorofluorocarbons (CFCs).

Backup Generators and Fuel Storage

Energy backup systems may use diesel generators that create diesel soot or particulate (an airborne carcinogen) and may require storage tanks for fuel which can leak. Leaks can occur from loose components, deteriorated gaskets, cracks, or holes in fuel lines.

Vehicle Fluid and Parking Lot Run-off

Delivery trucks could leak fuels, oils, and automotive fluids onto the property, which could 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.

Storage Tanks

Aboveground and underground storage tanks may store fuels, heating oil, and lubricants for equipment, maintenance vehicles, and machinery. Leaks or spills can contaminate soil and groundwater and pollute stormwater run-off.

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

Crisis management

Claims Scenarios & Examples

After more than 120 people became sick and 12 died of Legionnaires’ disease, health officials investigated the cause. They found that a hotel’s cooling tower had legionella bacteria. After testing a portion of the sick patients, they found that the strain of legionella in the tower matched the strain in the patients, and the tower was indeed the source. As a result, the hotel was responsible for cleanup costs and suffered environmental tort liability and a loss of revenue because of the occurrence.

A hotel’s heating oil tank, which was normally full, was found empty one day. The tank had unknowingly released 5,000 gallons of oil into the ground. The local environmental agency required cleanup and monitoring of the site. The hotel owner paid for the remediation of the hotel site. The cost of cleanup was $400,000.

A teenager died after visiting a hotel’s indoor swimming pool, and 12 people were hospitalized. It was discovered that they had carbon monoxide poisoning. The hotel staff members and police officers who responded to the emergency were also hospitalized after exposure to the air. The investigation found that carbon monoxide levels were 16 times the safe limit, and the fire chief believed the pool’s heater to be the cause.

An outbreak of Legionnaires’ disease at a hotel sickened dozens of guests and killed one person who stayed at the hotel or was visiting for a convention. Lawsuits were filed claiming the hotel was negligent in its maintenance and operation of the water system and sought compensation for medical expenses, lost wages, and more. The hotel had to shut down for the investigation and thoroughly clean up and disinfect the hotel and its water system.

A hotel had extermination services come for maintenance at the facility. Hotel guests alleged that the exterminators sprayed their belongings with a pesticide, filling their rooms with toxic fumes and making them sick. The guests filed a multi-million dollar lawsuit against the hotel for pesticide poisoning.

After finding a hotel was contaminated with mold during their stay, guests sued the hotel operator for over $1.8 million. After the remediation and business interruption costs, the operator estimated they would be out over $50 million.

A hotel experienced a chemical leak in their pool area that released fumes and caused guests to have difficulty breathing. One hundred guests became ill, and 12 had to go to the hospital.

A hotel was sued by numerous past guests who claimed they contracted Legionnaires’ disease from the spa and room showers. They alleged that the hotel was negligent in maintaining the potable water and plumbing system, causing the presence of legionella that the guests inhaled and ingested. The hotel’s general liability policy denied the claim and even filed a declaratory action that it had no duty to defend or indemnify the hotel.

After a hotel employee accidentally mixed acid and bleach in the laundry room, the chemical reaction released chlorine gas and caused health issues to some guests and employees, and the entire hotel was evacuated. Of those impacted, employees and guests staying at the hotel had to be taken to the hospital. They looked into suing the hotel to recover medical expenses and other damages.

For the second time in a year, a hotel was sued after guests became ill. The first time was due to a few cases of Legionnaires’ Disease, which was traced back to the hotel. The second lawsuit came from several families that attended a swimming party hosted at the hotel’s pool. The plaintiffs claimed they became severely ill because the chlorine levels at the pool and spa were too high. Levels were so high that kids complained of their eyes burning from the chemicals, and most of the guests became sick with chloramine gas poisoning, respiratory injuries, chest pain, burning in throats and eyes, and more. The plaintiffs sought more than $200,000 in damages.

Property Types

Hotels & Resorts

Environmental Exposures May Include: