ERP - Environmental Risk Professionals

Synthetic Mineral Fibers

Synthetic mineral fibers, including fiberglass and mineral wool, are common insulation materials. During installation, fibers and tiny particles can be released into the air and travel through improperly sealed ductwork or seams in walls and ceilings. These fibers are respiratory irritants that can impact building occupants. Fiberglass and mineral wool may contain phenol-formaldehyde or urea-extended phenol-formaldehyde. Formaldehyde is a human carcinogen. Additional irritants can include emissions from glues, flame retardants, or other additives. Bodily injury claims can result from exposure to or injuries from these insulation materials.

Spray Polyurethane Foam (SPF)

Spray polyurethane foam (SPF) formulation is a two-part chemical system where sides A and B are combined and mixed onsite during installation. The Consumer Product Safety Commission (CPSC) received complaints from homeowners after spray foam installation, including lingering odors, asthma, coughing, other respiratory-related complaints, eye/throat irritations, and headaches. Side A consists mostly of highly reactive chemicals called isocyanate, and exposure can cause skin, eye, and lung irritation, asthma, and dermatitis. Both skin and inhalation exposures can lead to respiratory responses. Side B contains a blend of proprietary chemicals, and the catalyst is typically a toxic heavy metal and flame retardant, an endocrine-disrupting agent. Accidental rupture of the container, off-gassing after application, or exposure to vapors, aerosols, and dust during or after the installation process can impact the breathing space of the building and may potentially expose its occupants.

Chemical Additives

Cellulose insulation is mostly non-toxic; however, there are concerns about certain chemicals routinely being applied to the cellulose as fire retardants that can be hazardous. Fugitive dust may be generated during installation, which may harm third parties. Cellulose is also composed of organic material. It can provide a food source for mold when wet.

Combustible Dust Hazards

Cutting, sanding, and other processing of some rigid foam board materials in restricted or confined spaces can create a combustible dust hazard. Combustible dust can ignite in the presence of energy or heat sources, potentially causing bodily injury or property damage to third parties.

Transportation, Disposal, and Asbestos

Transporting and disposing of insulation and chemicals used at jobsites may cause additional third-party exposures and cleanup liability. During transportation, an accident or leak could cause a release. The disposal of old insulation and waste chemicals may require special disposal procedures. Waste removed from jobsites could contain hazardous materials, like asbestos. Hazardous waste that is not properly segregated may get mixed with non-hazardous waste and improperly disposed of, leading to environmental tort liability and clean-up costs. During installation, repair, or renovation, existing asbestos could be disturbed. Asbestos was used in some older insulations, including vermiculite and blown-in attic insulation, insulating cement, and thermal insulation on basement boilers and pipes. Asbestos can also be found in wall cavities and ceiling or floor tiles. The cutting of block and pipe covering and the removal of insulation can cause a release of inhalable asbestos fibers that can deposit on other areas of the building and cause third-party liability. The fibers can cause serious health hazards or fatal diseases such as asbestosis, lung cancer, and mesothelioma.

Mold Disturbance

Existing mold can also be disturbed during installation, repair, or renovation. When mold-impacted areas are disturbed, small spores and fragments are readily released. Without proper containment and cleanup, these mold particles may disperse further and expose building occupants to health hazards.

Lead-Based Paint Disturbance

Lead-based paint may be present in older buildings. Installation, repair, or renovations that disturb lead-based paint may release lead-containing dust or debris, resulting in bodily injury or contamination.

Contracting operations performed “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

First-party emergency response costs

Mold, legionella, bacteria, and fungi

First and third-party transportation pollution liability

Sudden and accidental coverage for owned/leased locations

Lead and asbestos

Loading and unloading

Non-owned disposal site liability

Natural Resource Damage

Claims Scenarios & Examples

A school was closed for the second time in seven years due to mold problems and faced $6.5 million in repair costs. The first time they believed it was from a sprinkler head bursting and causing water damage in the walls. With the second infestation, they did a more comprehensive investigation. They found the real cause was improperly installed insulation around HVAC piping and equipment that allowed condensation on the pipes to build up and drip behind the school’s walls for years. Lawsuits were filed against the construction management company and the insulation contractor.

When homeowners began to get sick, they found that the spray foam insulation used in attics and walls contained Urea Formaldehyde, which was off-gassing formaldehyde. At least 700 homes in the area were found to have the same spray insulation, and a class action suit was filed against the insulation contractor on behalf of 140 homeowners.

During re-insulation work at an office building, the insulation contractor hired an asbestos abatement firm to remove asbestos-containing insulation. The abatement company did not provide adequate containment, releasing fibers throughout the building. The property owner sued the contractor for cleanup costs.

A pickup was towing a trailer of drums filled with hazardous chemicals overturned. The chemical, isocyanate used for spray foam insulation, spilled onto the road. Extensive cleanup was required, including tearing up parts of the road, and the driver was liable for the costs.

A class action lawsuit was filed against a spray polyurethane foam insulation manufacturer and a certified installer. According to the lawsuit, the toxic insulation caused adverse health effects and harmed property. The plaintiffs argued that SPF contains aromatic isocyanate, which the Occupational Safety and Health Administration (OSHA) has classified as hazardous, and they alleged that the only way to get rid of the toxicity of SPF is to have it removed.

An insulation contractor installed new spray foam insulation at a school. One of the teachers became ill after the installation and sued the contractor, alleging that airborne chemicals and residues from the insulation caused her harm.

An insulation contractor did not properly apply insulation around a sprinkler system pipe in an apartment building. The pipe froze and burst, resulting in water damage to several apartments. The water damage led to mold growth, and abatement was required. The building owner sued the insulation contractor.

After a water pipe burst in a condominium complex, causing water damage, restoration and insulation contractors were hired to clean up the water damage and install new insulation. After the work was complete, it was found that the restoration contractors did not remove all wet materials, and mold grew as a result. The complex tenants sued the contractors for remediation, re-insulation, and health expenses for exposure to mold and ongoing air monitoring. Although the insulation contractor was not responsible for the mold, they incurred significant defense costs.

Contractors

Insulation

Environmental Exposures May Include: