Contractors

Landscaping

Landscape contractors perform activities using materials that pose a significant environmental liability. Earthwork operations like excavation and grading could damage underground utilities, causing a hazardous release or leading to run-off of silt and sediment that can pollute water and threaten ecological systems. Pesticides, herbicides, and fertilizers can contain toxic materials that pose environmental and human health hazards. Improper application or leaks and spills during transportation can cause contamination of soil or water systems and lead to cleanup and third-party liability. Due to the potential toxicity, these materials can also be classified as hazardous waste and require special disposal procedures.

Download PDF

Environmental Exposures May Include:

Damage to Subsurface Utilities
Silt and Sediment Runoff
Fertilizer Contamination Risks
Herbicide & Pesticide Spills and Over-Application
Pesticide Drift
Hazards of On-Site Storage
Transportation & Loading/Unloading Accidents
Hazardous Waste Disposal Requirements
Improper Drainage or Erosion Control Leading to Moisture Intrusion

Damage to Subsurface Utilities

Excavations into subsurface utilities could result in accidental damage to the sewer, water, gas, electric, heating oil lines, septic systems, and tanks. This damage can cause hazardous releases, explosions, or pressure-main washouts of soil, resulting in primary property or bodily casualty and cleanup liability.

Silt and Sediment Runoff

Silt and sediment are fine-grained soil particles readily carried in surface run-off and may migrate directly or indirectly to surface waters. Improper erosion control can lead to surface run-off, which can impair the functionality of stormwater drainage systems and catch basins, severely damage water quality, cause ecological damage to streams, rivers, and aquatic systems, and damage to adjacent property. Control of silts and sediments is required under the Clean Water Act. Contractors may face regulatory action such as cleanup orders, fines, and penalties from federal, state, or local regulators.

Fertilizer Contamination Risks

Site application of fertilizers may result in ground or surface water contamination or health impairment, particularly if nitrification inhibitors are present, such as nitrapyrin, dicyandiamide, or carbamoyl methylpyrazole. Over-application, shallow water tables, and stormwater run-off may cause this. Phosphorus, a main ingredient in synthetic fertilizers, encourages the growth of algae, which depletes oxygen out of lakes, rivers, and streams and can harm aquatic life or lead to the growth of toxic blue-green algae.

Herbicide & Pesticide Spills and Over-Application

Leaks, spills, or over-application of herbicides and pesticides can contaminate soil, surface, or groundwater. Applications made before heavy rains or on saturated soils can also contribute to contaminated stormwater run-off. Pesticides and herbicides contain toxic materials that pose health risks to humans, animals, aquatic organisms, and plants. If applied to hard surfaces, such as concrete, there is nothing to absorb the pesticide, and it is even more likely to cause contaminated run-off. Vegetative wastes with over-applied herbicides or insecticides or retaining persistent chemicals will also likely contaminate a disposal site.

Pesticide Drift

Pesticide and fertilizer drift is an insidious threat to human health, wildlife, and ecosystems in and around areas where harsh chemicals are used to treat lawns. Children are especially vulnerable to these airborne pesticides, and when pesticides are sprayed, they can drift and settle on playgrounds, porches, laundry, toys, pools, furniture, and more.

Hazards of On-Site Storage

Storage at any owned/leased operational facility of pesticides, fertilizers, and automotive fluids for work site equipment and vehicles carries environmental exposure. Spills, improper storage containment, and exposure to rainfall can cause chemicals to run-off and contaminate surface water, groundwater, and soils, resulting in cleanup and potential natural resource damage claims. Storage of concentrated ammonia-based fertilizers may react with other stored incompatible materials (e.g., lime, urea, nitrates, and sulfur) if leaked or spilled, resulting in a fire or the emitting of air pollutants.

Transportation & Loading/Unloading Accidents

During transportation or loading and unloading, an accident or container breach could cause a leak or spill of pesticides, fertilizers, or fluids from powered equipment and lead to environmental liability. Dry particulates that are loose can also blow off during transport if they are not properly covered or secured, which can cause air contamination.

Hazardous Waste Disposal Requirements

Pesticides, fertilizers, and automotive fluids can fall under hazardous waste and require special disposal procedures. Pesticide waste can include rinse material from containers and spray equipment, surplus spray solutions, and excess pesticides. Improper handling and disposal can lead to contamination of soil and ground and surface water causing cleanup and third-party liability. Several federal and state laws regulate pesticide waste disposal, and improper disposal can also result in fines for the contractor.

Improper Drainage or Erosion Control Leading to Moisture Intrusion

Improper erosion control or installation of irrigation and drainage systems, retaining walls, and trenches can lead to water run-off that causes moisture intrusion conditions and mold growth.

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

First-party emergency response costs

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

Sudden and accidental coverage for owned/leased locations

First and third-party transportation pollution liability

Loading and unloading

Non-owned disposal sites

Silt & sedimentation

Claims Scenarios & Examples

Soon after the application of pesticides and herbicides to a golf course, heavy rains occurred. The stormwater washed the chemicals into an on-site pond, negatively impacting protected species and wetlands. The EPA investigated and ordered the restoration of the wetlands and assessed natural resource damages to endangered species and wetlands. The damages to the insured’s site were not covered under the herbicide and pesticide coverage on their general liability policy, which limited coverage to third-party property damage only. Their claim for the on-site remediation was denied.
A man claimed to be sprayed with pesticides while sitting outside a cafe by a landscaping company’s worker applying a mix of bug and weedkillers to the site’s landscaping. The landscaper was wearing a backpack sprayer to apply the pesticides. The man sued for $55,000 to cover medical expenses, bodily injury, and suffering, which included severe coughing, insomnia, difficulty breathing, and exhaustion.
A landscaping company was fined by the Environmental Protection Agency after two pesticides entered the tributary of a river. The company’s employees did not correctly follow pesticide instructions and sprayed the chemicals in the water bordering a creek that led into a river. Both pesticide labels prohibited applying the chemicals directly on water or areas where water is present, violating the Federal Insecticide, Fungicide, Rodenticide Act (FIFRA) and the Clean Water Act (CWA).
A residential neighborhood hired a landscaping contractor to control the weeds and vegetation in the neighborhood. The community was on a golf course and the over-application of chemicals on the vegetation contaminated a lake on the golf course. Before the contamination was realized, the lake water was used to water the golf course, impacting the grass on all 18 holes. Eight to ten inches of topsoil on the golf course had to be removed, costing several million dollars.
While working on fill operations for a housing project, a landscaping contractor spread soil across a project site without knowing it was contaminated with petroleum. When a lawsuit was filed, the landscaper was brought into the claim for exacerbating the contamination’s extent. Deliberations continued for some time, and it was concluded that the landscaper would pay cleanup costs and defense expenses.
A landowner sued a town, school, and landscape architect for damage to his property that resulted when the school refurbished its athletic field. The landowner claimed that erosion and run-off from the refurbishment caused damage to his property. The run-off caused rocks, silt, iron, and bacteria to pollute his home, pond, and the wetlands alongside his property. The suit sought $500,000 in damages.
A couple hired a landscaping contractor to slope the area around their pool. After the work was completed, the area had a swale that was directed toward the home, and after a rainstorm, a foot of mud flowed into the pool, over the deck, and into the first floor of the home. The couple sued the contractor for professional negligence and faulty workmanship and sought more than $100,000 for damages and redesign expenses.
Landscaping contractors struck a natural gas line while digging holes for fence posts, causing a gas leak, and a fire erupted when the landscaping machinery sparked flames. Over $10,000 in property damage resulted, including melted siding and burned fencing on nearby homes and water damage from putting out the fire.
A landscaping company used a pesticide that contained aluminum around a home. After applying the pesticide, the owner sprayed water on it, which caused a chemical reaction, and phosphine, a gas that fills the lungs with fluid, resulted. Three children died from the exposure, and one other became sick.

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.

Download PDF
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