Stormwater Run-off
Stormwater run-off from manufacturing facilities could come in contact with chemicals, debris, waste, and other outside storage, contaminating soil, groundwater, and natural resources such as rivers, lakes, and streams and harming aquatic life.
Accidental Releases During Transport
Accidental releases during the transportation of raw materials, products, and waste from a manufacturing facility during vehicle accidents can enter the groundwater and contaminate drinking water sources. Leaks from the tank or containment system holding the material during transit could result in pollutants entering the roadway and contamination being released to nearby storm drains.
Wastewater
Washing down equipment, maintenance, storage, and repair areas could discharge pollutants into storm drains. Wastewater generated from these activities must be properly contained, collected, and disposed of. Exposures may include unintended air emissions from the manufacturing process, such as releasing naphthenic and aromatic hydrocarbons. There may also be unintended air emissions from the exhaust or toxic gases released by malfunctioning equipment. Vehicles and powered equipment, such as forklifts, trucks, and cranes, may be used at the manufacturing facility. These types of internal combustion vehicles are powered by diesel or propane, which can emit carbon monoxide gas.
Loading and Unloading
Heavy-duty trucks loading and unloading at manufacturing facilities can leak automotive fluids on the property. Pollutants such as heavy metals, solvents, fuels, hydraulic fluids, oil, and grease can leach into the soil, contaminate groundwater, or be collected by rainfall, creating contaminated stormwater that can pollute storm drains and adjacent sites.
Storage Tanks
Releases of chemicals or petroleum-related products from aboveground or underground storage tanks or the related piping, along with vessels used for heating the base fluid, fractionating towers, sedimentation tanks, and filtering systems, could enter storm drains and damage the local sanitary sewer or municipal or private drinking water systems in the areas surrounding the manufacturing facility.
Hazardous Waste Management
Lubricant manufacturers may generate hazardous wastes requiring special disposal procedures, such as used oil and oil filters, lead-acid batteries, and equipment containing mercury (thermostats). Improper waste disposal could lead to environmental liability or legal consequences for violating regulatory requirements. Generators who send their wastes to non-owned disposal sites could be held responsible for future environmental conditions from that site. Releases of contaminants from non-owned disposal facilities can contaminate soil, groundwater, and surface water and cause damage to third-party property located adjacent to the disposal facility.
Illicit Abandonment
Illicit abandonment is the illegal dumping of pollutants on a property. It can become the property owner’s burden for cleanup and third-party bodily injury or property damage if law enforcement cannot locate the originator of the waste.
Mold
Mold could develop from moisture intrusion due to storms and flooding from leaking water pipes, sprinklers, and HVAC systems. Many manufacturing buildings are flat-roofed, where pooled water can be absorbed by the roofing material and seep into sub-roof areas. Mold can also develop within HVAC systems (air handling units, coils, and ductwork) or from improper building ventilation or humidity management of climate-controlled areas within the building.
Neighboring Contamination and Migration
Many manufacturing facilities are located in commercial and industrial areas within a city. Contaminants from neighboring facilities could migrate to the manufacturer’s property. If the neighboring business owner is not properly insured or goes bankrupt, the cost of cleanup could fall on the manufacturer for their property.
Flammables
Some products at a lubricant manufacturing facility are flammable and may result in a fire that spreads and releases other contained materials. A hostile fire at the facility could emit toxic fumes and smoke from the materials stored at the site or due to a mix of materials resulting from the fire. Firefighting solutions such as water or foam could create contaminated run-off that spreads to nearby storm drains or properties, resulting in environmental cleanup and tort liability.
Environmental Pollution Liability Can Provide Coverage For
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
Defense of third-party claims
Both sudden and gradual pollution conditions
Products pollution liability
First and third-party transportation pollution liability
Loading and unloading
Mold, bacteria, legionella, and more
Natural resource damage
Emergency response costs
Above and underground storage tanks
Non-owned disposal sites (NODS)
Civil fines and penalties
Illicit abandonment
Business interruption resulting from pollution conditions
Crisis/reputation management