Contractors

Millwright

CPL/PL

Millwright Contractors can face environmental liability through various operations, materials and disposal activities. Contracting operations can lead to an inadvertent release of existing pollutants, such as asbestos, polychlorinated biphenyls (PCBs), or lead-based paint. They could also create a pollution exposure through the release of fumes from welding, crystalline silica from concrete work, or other chemicals, such as solvents or adhesives brought to the facility by the millwright contractor. Leaks or spills of equipment fluids, fuels, or chemicals can occur and impact the environment. Transportation and disposal of site related wastes can also pose environmental liability for these contractors.

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Environmental and Professional Exposures May Include

Equipment Fluid Leaks
Chemical Spills
Crystalline Silica
Disturbing Asbestos, Lead, and PCBs
Toxic Air Emissions
Wastewaters
Jobsite Waste Disposal
Accidental Spills During Transport
Toxic Smoke and Firefighting Run-Off
Design and Workmanship Errors
Solvents and Hydraulic Oils

Equipment Fluid Leaks

Equipment used at jobsites, such as cranes, industrial lifts, forklifts, etc., use fuels and hydraulic oils. Releases of fuels, oils and fluids from equipment, storage or during fueling, due to accidental spills or leaks, or from vandalism, can discharge pollutants into soil, groundwater, storm drains, or drywells. Claims for cleanup, natural resource damages, or third-party bodily injury or property damage can result.

Chemical Spills

Contracting work can include the moving, lifting, or placing of machinery or the operation of heavy equipment. During these operations, site tanks, containers or equipment that are unrelated to the work can be struck. These tanks or equipment can contain chemicals or wastes which can leak or spill, causing an environmental incident and resulting in potential cleanup liability.

Crystalline Silica

Millwork may involve installing concrete for supports or flooring. Cement dust can irritate the eyes, nose, throat, and upper respiratory system. Crystalline silica is one of the components of sand, rock and cement used in concrete mixtures. Construction processes such as cutting, chipping, drilling and grinding can generate irritant dusts and make the silica respirable. Third parties can breathe in silica dust, which is hazardous and can cause scarring and formation of nodules, called silicosis. Sufficient scarring will decrease breathing capacity and increase susceptibility to lung infections. Exposure may also lead to other ill effects such as chronic obstructive pulmonary disease (COPD), lung cancer, or kidney disease. Third-party bodily injury claims can arise from exposure to dust and crystalline silica released from concrete work.

Disturbing Asbestos, Lead, and PCBs

Maintenance, installation, or repair work on equipment can disturb existing asbestos, lead-based paint, or PCB-containing materials. Asbestos-containing materials may include insulation on piping or machinery. Lead-based paint could be present on the equipment or on walls or flooring in the area of equipment. Historic machinery and electrical equipment may also have PCB-containing hydraulic oils, thermal insulation or adhesives. Improper identification and inadvertent disturbance of these materials may cause a hazardous release that can lead to third-party bodily injury claims and remedial and disposal liabilities.

Toxic Air Emissions

During soldering, brazing and welding work on equipment, metal fumes are produced and released into the air, which can be toxic. Grinding activities can release dusts. Carbon monoxide and particulates may also be present in exhaust fumes from gas- or diesel-powered equipment used for lifting heavy machinery. If fumes, dusts, and equipment exhaust are not properly vented or controlled, third-parties can be exposed to pollutants and file bodily injury claims.

Wastewaters

Wastewaters can be generated from cleaning equipment used at a jobsite or from concrete operations. These wastewaters may contain particulates, residual oils and fluids, and other pollutants. Mishandling can result in regulatory violations or cleanup claims.

Jobsite Waste Disposal

Jobsite waste can contain hazardous materials, including asbestos, lead-based paint, mercury, PCBs, solvents, etc. Waste may include liquids, sludges, or other materials on or under equipment. These wastes may require special disposal procedures. Hazardous wastes can be inadvertently mixed with non-hazardous wastes and disposed of improperly. Improper disposal can lead to regulatory violations and cleanup liability. Additionally, if the contractor arranges for disposal of wastes, they could become liable under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) for a release at the disposal location.

Accidental Spills During Transport

Transportation creates a wide range of environmental exposures. Spills may occur while chemicals, waste debris, or equipment are being transported to or from the jobsite or disposal facility or during loading/unloading. Transportation exposures may be from the insured operating their own vehicles or through contingent liability through those they hire.

Toxic Smoke and Firefighting Run-Off

Hot work performed for installation and repair of equipment uses heat and spark-producing tools. Hot work presents an increased risk of fire and explosion hazards at a jobsite. A fire could emit toxic fumes and smoke from the materials stored at the site or due to a mix of materials that occurs as a result of a fire. Firefighting water or foam could create contaminated run-off that migrates to nearby storm drains or properties and results in tort liability.

Design and Workmanship Errors

Millwright contractors design and set up large amounts of heavy machinery. They may also create custom fixtures or parts and make repairs to equipment. This design work exposes millwright contractors to professional liability exposures. Millwright contractors may also incur professional liability risks from defective materials or products used in their work. Furthermore, mistakes made in workmanship can lead to project delays, loss of income, reinstallation costs, etc.

Solvents and Hydraulic Oils

During installation or maintenance of equipment, millwright contractors may use or handle solvents, adhesives, epoxies and hydraulic oils. Spent hydraulic oils may also need to be removed during maintenance. A leak or spill during handling or storage of these chemicals could result in an environmental incident that impacts soil or groundwater or discharges to sewer or storm drains, potentially impacting surface waters. Cleanup, natural resource damage, or third-party claims could result.

A Combined Pollution & Professional Liability Policy Can Provide Coverage For

Contracting operations done “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

First-party emergency response cost

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

Sudden and accidental coverage for owned/leased locations

Non-owned disposal site liability

First and third-party transportation pollution liability

Loading and unloading

Professional liability

Mitigation/rectification

Excess/contingent design

Defense of third-party claim

Claims Scenarios & Examples

During work at a paper mill, a piece of equipment was being lifted into place. The millwright contractor backed the lift up and hit a mobile refueling tank that was present on-site, releasing 300 gallons of diesel fuel. The fuel flowed to a storm drain and was discharged to a nearby creek, causing a fish kill. The contractor was responsible for emergency response costs, natural resource damages and cleanup costs related to the accident.
A compressed gas cylinder containing an argon oxygen mix was being used for welding by a millwright contractor. The cylinder had not been properly secured, and it fell over. The valve on the cylinder broke, releasing the argon mixture at high pressure. An employee of the company where the millwright was repairing a piece of equipment was standing near the cylinder at the time of the accident. The argon came into contact with the worker’s skin, causing frostbite. The worker was taken to a nearby hospital for treatment. He sued the millwright contractor for bodily injury.
A millwright contractor was hired by a manufacturing facility to maintain a piece of equipment. Prior to disassembling a hydraulic accumulator to rebuild it, the millwright employer neglected to release the pressurized nitrogen gas. While the contractor was working on the machinery, the nitrogen gas leaked out. The millwright employee and a plant worker who was in the area of the equipment both died of asphyxiation. The plant worker’s family sued the millwright contracting company.
A piece of equipment was being moved into place at an oil and gas refinery. While lifting the equipment fell and damaged a large diesel storage tank. A few thousand gallons of diesel were released, but were contained within the tank farm secondary containment. The millwright contractor was liable for the emergency response and cleanup costs.
A millwright contractor was performing some welding on equipment that was near an air intake for the ventilation system. Welding fumes were drawn into the ventilation system and sickened some people in the offices of the facility.

Final Consideration

As a contractor you can be faced with the cost to defend yourself against allegations or legal action from pollution or professional 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 claims handling expertise.

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

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