Equipment Leaks
Heavy equipment such as pile drivers, dredgers, and mobile tanks may be brought to a jobsite. A release of fuels or lubricant oils can occur from vandalism, malfunctions, or improper use, potentially discharging pollutants into the environment and requiring cleanup.
Stormwater Run-off
Marine construction projects typically involve earth-moving, excavation, and equipment operation near or on the water. Marine contractors must implement comprehensive stormwater management plans to control run-off during rainstorms. Improper stormwater management can lead to sediments and other pollutants being carried off, contaminating soils, degrading surface water quality, and impacting aquatic life, wildlife, natural habitats, and drinking water.
Submerged Hazard Releases
Equipment can strike an underwater pipeline or other unknown hazards, releasing hazardous materials that can contaminate the marine environment, leading to habitat destruction and harm to wildlife, resulting in cleanup costs.
Air Emissions
Many types of equipment used by marine contractors, such as those powered by diesel or propane, can emit carbon monoxide gas and diesel particulates. Improper controls or malfunctioning equipment can result in exceedances and regulatory violations. Additionally, an accidental release from stored chemicals may produce a vapor cloud. Air emissions or a vapor cloud release can pose health hazards to third parties.
Sediments
Dredging activities can resuspend sediments in the water, increasing turbidity levels and degrading water quality, negatively impacting aquatic wildlife and vegetation. These sediments may contain harmful substances, including heavy metals, polychlorinated biphenyls (PCBs), or petroleum residues. These contaminants can enter stormwater run-off, spreading to surrounding bodies of water and adjacent properties and potentially resulting in property damage claims and further environmental harm.
Asbestos
Older marine structures, including piers, docks, ships, and underwater pipelines, may contain asbestos-containing material (ACM). During reconstruction, renovation, or recoating, disturbing existing ACM can release harmful toxins. Depending on its condition, ACM may be regulated as hazardous waste and must follow procedures for handling, labeling, transporting, and disposing of it at an approved facility. A contractor can be considered a waste generator and retain cradle-to-grave liability.
Ocean Dumping Act Violations
The Ocean Dumping Act of 1972 prohibits the disposal of various materials into the ocean and mandates permits for certain other types of waste. Improper disposal of waste from construction sites, dumping outside of authorized areas, or a spill during loading, unloading, or transporting can lead to cleanup costs, environmental tort liability, and legal consequences for violating regulatory requirements.
Design Failures
Marine construction contractors may make modifications to design specifications while at the jobsite. Malfunctions arising from these changes create a direct professional liability for the contractor. Malfunctions from design errors of a sea wall or other erosion control systems can result in coastal flooding or habitat destruction, impacting schedule and costs and creating a direct professional responsibility for the contractor.
Pre-existing Contaminated Soil
During excavation and dredging, unknown pre-existing contaminated soil could be collected and create environmental liability in the transportation and disposal of the contaminated soil.
Shoreline Alteration Liability
The construction of marine infrastructure, such as piers or docks, can involve the modification of natural shorelines and coral reefs, disrupting ecosystems. Additionally, these infrastructures can use pre-treated wood containing toxic chemicals that can leach into the water and harm aquatic life and vegetation. Failing to adhere to environmental protection regulations to prevent habitat damage can result in regulatory fines and stricter enforcement measures.
A Combined Pollution & Professional Liability Policy 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
Sudden and accidental coverage for owned/leased location
First and third-party transportation pollution liability
Loading and unloading
First-party emergency response costs
Mold, legionella, bacteria, and fungi
Lead and asbestos
Silt and sedimentation
Non-owned disposal sites
Mitigation/rectification
Excess/contingent design