ERP - Environmental Risk Professionals

Accidents and Water Contamination

Accidents involving vehicles, such as a rollover or upset on the highway or roadway, could cause the release of non-hazardous materials and wastes that may enter the side of the roadway and contaminate the soil and groundwater. In addition, the release may migrate to nearby surface waters, such as lakes, rivers, streams, or creeks, and harm aquatic life. Releases to surface or groundwater could potentially contaminate drinking water sources.

Vehicle Washdowns and Wastewater Run-off

On-site vehicle washing or washing down of vehicle maintenance areas generates wastewater containing residual debris from transported material, oil and grease, and cleaning agents, including solvents and detergents. Improper containment, collection, and disposal can allow wastewater to enter storm drains or nearby surface waters or leach into soils and groundwater. Wastewater that discharges into surface waters can harm aquatic systems and natural resources.

Fluid Leaks and Spills

Vehicles contain fuel, oil, hydraulic fluid, and other automotive fluids. Spills during maintenance or fueling operations, or leaks from mounting, lines, hoses, fittings, valves, and connections while garaged or in transport, can contaminate soils and groundwater or discharge into surface waters through drains or stormwater run-off. On-site storage of fuel, oil, lubricants/grease, and automotive fluids in storage tanks (above or underground) and drums can also leak during containment or be spilled during loading, resulting in environmental liability.

Used Oil

Used oil may be considered hazardous waste or non-hazardous waste depending on the chlorine content, and it is considered to be hazardous waste in some states regardless of chlorine content. Transporters must be aware of the requirements for the states in which they are transporting used oil. Improper segregation, labeling, and disposal of hazardous materials can result in environmental liability.

Waste Storage

Following the collection of non-hazardous waste and other materials, transporters may be required to store the waste or materials at their site or temporary storage facilities pending final disposal. Releases during the temporary storage of solid waste could lead to soil, groundwater, or surface water contamination and result in costly cleanup.

Cargo Securing and Airborne Releases

Vehicles should be covered and secured with a tarp or other cover material for hauling loose materials that could be released during transport, such as construction materials, rocks, sand, or dirt. Failure to use or properly cover wastes could generate airborne dust or release loose materials to the road, nearby properties, or adjacent natural resources.

Material Incompatibility

Transporters who package materials in preparation for shipping, or collect various materials or wastes, may inadvertently mix two incompatible materials, creating an environmental hazard. Mixing incompatible chemicals can cause off-gassing and release toxic vapors that pose an inhalation hazard to third parties or could cause a fire or spontaneous combustion.

Third-Party Liability for Transit Releases

Releases of transported materials during an accident or leakage from the vehicle’s trailer during transit on a highway or roadway may contaminate nearby properties resulting in third-party claims for property damage or cause injury to individuals that result in third-party bodily injury claims.

Waste Characterization

A generator that fails to accurately characterize its waste could expose the transporter to the inadvertent collection of hazardous waste, and the transporter can be held liable for illegal disposal of the material at a disposal facility that is not permitted to accept the waste.

Claims Scenarios & Examples

A waterproofing contractor was traveling to a jobsite in a tanker containing liquid waterproofing material and collided with another vehicle. Approximately 100 gallons of waterproofing product were released onto the road. The spill was immediately reported to the state Department of Environmental Protection (DEP) and had to be remediated.

A tanker truck filled with edible-flavored syrups was involved in an accident. The tank cracked, and the liquid leaked into a nearby reservoir, killing much of the fish and plant population. The municipality filed a pollution claim stating the company was responsible for cleaning up the water and restoring the fish and plant life to a suitable level. The company reported the claim to their insurance agent, seeking coverage under their auto policy. The agent informed them the auto policy did not offer such coverage, so they turned to the General Liability policy, only to learn that pollution incidents were not covered. The syrup company had to pay roughly $3,000,000 out of pocket to remediate the contaminated area and satisfy the local authorities.

Over five years, the Environmental Protection Agency (EPA) received 33 reports of large milk spills or discharges involving dairies, dairy farms, or trucking companies. Once the milk reaches waterways, it interacts with bacteria so that water is depleted of oxygen. The bacteria die, and then the fish die too. For example, 700 gallons of milk were dumped down a drain on a farm, killing 3,800 fish in a nearby stream. In situations of quantity and damage to natural resources, a milk spill is often treated similarly to an oil spill and is considered a pollutant.

A dump truck operator hauling a load of dirt and rocks failed to negotiate a turn in the road. The load shifted, causing the truck to overturn and land on its side. As a result, a discharge of cargo occurred. The contents spilled down the sharp embankment and into the stream below. The auto and general liability insurers denied the cleanup claim based on the pollution exclusion, citing the Federal Clean Water Act. The Act broadened the definition of “pollutants” beyond that of manufactured toxic chemicals or hazardous wastes. The environmental liability was not covered because of the pollution exclusion in the dump truck driver’s CGL insurance policy. The resulting out-of-pocket costs for full environmental restoration and recovery of the embankment and stream devastated the contractor’s balance sheet.

About 900 claims were filed by motorists who suffered damage to their vehicles after a truck spilled thousands of gallons of liquid asphalt as it leaked from the truck’s bed along 40 miles of a turnpike. The trucking company’s primary auto insurance carrier stated that their policy excluded pollution events. The value of claims filed due to the asphalt spill exceeded $1.7 million.

A waste hauler hired by a service station to carry used motor oil overturned and spilled its cargo into a stream. The spill was reported to the DEP, and an emergency response team cleaned the road. The waste hauler was responsible for costs associated with investigating, remediating, and monitoring the soil and water contamination. Since the location was remote, remediation efforts were significant at $700,000.

Transporters

Non-Hazardous

Environmental Exposures May Include: