Contractors

Industrial Cleaning

This sector covers construction, manufacturing, heavy industrial, farm, and food contractors. They utilize specialized equipment and chemicals to clean factories, plants, warehouses, and tanks, and they may respond to emergency spill situations. Specialized equipment, like hydro-cleaners, water blasters, and vacuum trucks, can pose environmental risk liability. Accidents or leaks of collected hazardous materials or contaminated wastewater can pollute sites or migrate to water systems. Many industrial cleaners and solvents contain toxic materials that can create harmful vapors that impact third parties. Transportation and disposal of spent solvents and collected hazardous wastes can also pose an environmental liability for contractors.

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Environmental Exposures May Include:

Hydro-cleaning Wastewater Pathways
Vacuum Truck Transport and Leaks
RCRA Hazardous Waste Responsibilities
Cross-Contamination from Incomplete Cleanup
Handling of Industrial Cleaners and Solvents
Cleaning Tanks and Hazardous Storage
Contaminated Wastewater from Cleaning

Hydro-cleaning Wastewater Pathways

Hydro-cleaning encompasses pressure washing and hydro-blast application. Wastewater from these operations can create migratory pathways for contamination to flow on or off-site if recapture methods are not in place or if the wastewater flows beyond recapture points.

Vacuum Truck Transport and Leaks

Vacuum trucks respond to spills and cleanups or collect, transport, and dispose of many types of wet and dry material, including sewage, wastewater, contaminated soils, sludge, and chemicals. Accidents, spills, or leaks during transportation or loading and unloading of any hazardous or contaminated materials could lead to cleanup and third-party liability.

RCRA Hazardous Waste Responsibilities

Under the Resource Conservation and Recovery Act (RCRA) hazardous waste regulations, contractors are responsible for determining if their wastes meet hazardous waste criteria and ensuring they are properly managed, recycled, or disposed of. Improper disposal could lead to cleanup and third-party liability, and there may be legal consequences for violating the RCRA hazardous waste requirements. Customers are responsible for classifying and manifesting wastes removed by industrial cleaners; however, removing, transporting, and disposing of hazardous waste can make the contractor a co-generator and subject them to joint and several liability.

Cross-Contamination from Incomplete Cleanup

Failure to properly clean up surfaces and substances can expose people who live or work in the structure to health risks and further contamination in surrounding soil and groundwater. Cross-contamination can also occur from residual pollutants left on surfaces or spreading contamination to previously unaffected areas.

Handling of Industrial Cleaners and Solvents

Industrial cleaners, scalers, and solvents brought to jobsites must be properly handled. Cleaners or scale removal chemicals contain one or more acids, such as sulfuric, hydrofluoric, phosphoric, or hydrochloric. Solvents pose varying toxicity levels and may contain benzene, toluene, acetone, vinyl chloride, heavy metals, degreasers, and disinfectants. Improper use and mixing of these cleaners could result in a violent reaction, corrosive damage, or release of toxic vapors. Storage container breaches, leaks, and spills caused during the transportation to and from jobsites and loading and unloading could create cleanup liability or run-off that can cause ground and surface water contamination.

Cleaning Tanks and Hazardous Storage

Industrial cleaning contractors are often contracted to clean equipment and storage containers that contain hazardous materials. Improper cleaning procedures or handling and containment of materials inside tanks, rail cars, silos, and other storage facilities could release hazardous materials, toxic vapors, or dust that could impact soil, water systems, and air quality.

Contaminated Wastewater from Cleaning

Wastewater generated at work sites from wet solution cleaning procedures can contain contaminants such as silts, detergents, oil/grease, solvents, pathogens, biohazards, molds and mold spores, bacteria, flame retardants, and other toxic chemicals. Releases can contaminate soil or groundwater, migrate off-site to neighboring properties or enter storm drains or sewers. Releases to a stormwater drain inlet or ditch may contaminate surface water and impact aquatic organisms, causing natural resource damage.

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

Defense of third-party claims

Natural Resource Damage

Non-owned disposal sites

Sudden and accidental coverage for owned/leased locations

First-party emergency response costs

Mold, legionella, bacteria, and fungi

First and third-party transportation pollution liability

Loading and unloading

Lead and asbestos

Claims Scenarios & Examples

An industrial cleaning company was cleaning up a sewage spill for a housing project when they accidentally released a toxic chemical cloud. Workers were using lime to disinfect the basement, and when the lime reacted with water on the floor, corrosive fumes were generated, knocking out two residents and sickening twenty others.
After a vacuum truck exploded while cleaning out an industrial tank, chemicals were released, setting off other explosions in the facility. Over fifty firefighters responded, and fifteen people had to go to the hospital due to burns and inhalation of toxic fumes.
A vacuum truck delivering industrial waste to a wastewater disposal facility exploded, releasing an unknown hazardous chemical. The explosion caused the evacuation of nearby residents, closure of nearby businesses, farms, and a school, and sent dozens of people to the hospital. The blaze started by the explosion had to be left to burn out as fire crews didn’t want to use water that could allow contaminated run-off to enter a nearby river.
A cleaning contractor was cleaning a rail car containing acid and accidentally spilled 3,800 gallons of contaminated wastewater. The contractor quickly contacted state and federal agencies and tried to contain the spill. Significant damage resulted from the spill, and the contractor had to pay remediation costs. The contractor also agreed to contribute to the attorney general’s environmental protection fund in lieu of fines.
While vacuuming large storage tanks at a chemical plant, an industrial cleaning contractor accidentally pumped toxic gas into the production area. The fumes overtook several of the employees who were at the facility, killing them. The families of the victims filed claims against the contractor.
A food service cleaning contractor’s sludge truck overturned, spilling 1,000 gallons of used cooking oil and grease, which released onto the road and into a nearby creek. Emergency crews isolated the spill with booms. Water samples were collected, and the Department of Natural Resources monitored the cleanup. The contractor was liable for the cleanup and monitoring costs.

Final Consideration

As a contractor you can be faced with the cost to defend yourself against allegations or legal action from pollution related events, regardless if you are at 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.

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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