ERP - Environmental Risk Professionals

Silt & Sediment Runoff

Silt and sediment are fine-grained soil particles that can migrate in surface water run-off during a rain event, an accidental water pipe break, or excessive watering for dust suppression. During construction activities for new roads, a large proportion of bare ground and exposed earth leaves soil highly vulnerable to erosion by wind and water. Inadequate erosion control can lead to surface run-off of these soil particles, impairing the proper functioning of stormwater drainage systems, causing ecological damage to streams and rivers, and causing adjacent property damage. Control of silts/sediments is required under the Clean Water Act, and contractors may face regulatory action such as cleanup orders or fines and penalties from federal, state, or local regulators.

Pavement Marking Chemicals & Air Releases

Products for marking pavement surfaces include primers, acrylic water-based paint, solvent-based paints, acetone-based paint, epoxy-based paint, cold-applied thermoplastics, hot-applied thermoplastics, and preformed tapes. These products may contain hazardous chemicals that could be released during storage, heating, melting (or holding materials at elevated temperatures), mixing, extrusion, spray application, and equipment cleaning. Until chemicals become bound or adsorbed to the pavement, there is the potential for release into the air through volatilization, spills to soil and groundwater, and run-off into storm drains and surface waters.

Abrasive Roadwork Dust (Grinding, Milling, etc.)

Abrasive work on existing roads (i.e., grinding, milling, grooving, sawing, shot blasting, and sandblasting) produces a fine particulate dust that can contain various pollutants, including polycyclic aromatic hydrocarbons, heavy metals, crystalline silica, styrenes, and methacrylates. This dust is highly mobile in the air, and if not adequately contained, it can expose third parties to harm, including respiratory illness or, in some cases, cancer.

Water Blasting Particulate Waste

High-pressure water blasting used for pavement resurfacing, cleaning, striping, and marking removal produces particulate waste matter. Suppose these particulates are not adequately recovered or the holding tank that the particulate waste is being stored in leaks. In that case, particulates can flow as run-off into the surrounding soil, surface water bodies, and storm drainage systems.

Pre-Existing Contaminated Soil

During excavation and grading for new roadways, unknown pre-existing contaminated soil could be collected and spread to clean areas of the site or create environmental liability in the transportation and disposal of the excavated material.

Asphalt, Emulsions, Seal Coats & VOCs

Hot-mix or hot-laid asphalts, asphalt rubber and emulsions, cutbacks, and many surface overlay treatments and patching materials contain a myriad of pollutants, including petroleum hydrocarbons, petroleum aromatic hydrocarbons (PAHs), volatile organic compounds (VOCs), polymers, silica, and heavy metals. VOCs released from heating these materials and silica dust from road construction can result in air concentrations that are harmful to human health. Coal-tar seal coating contains carcinogens that present known health and environmental hazards and are severely toxic to aquatic systems. Run-off of uncured compounds may contaminate soil or groundwater on-site or at adjacent properties, surface water, and stormwater drainage systems.

Equipment Leaks & Refueling Spills

Construction equipment may be powered by diesel fuel and utilize petroleum-based hydraulic fluids and lubricants. Leaks from equipment or spills during refueling or maintenance can contaminate jobsite soils or storage yards.

Fugitive Dust & Airborne Asbestos

Wind blowing across unpaved surfaces and heavy equipment movement at construction sites can generate fugitive dust. Particulate matter in dust can degrade air quality and harm third parties. Additionally, asbestos can be present in certain rock formations, and asbestos fibers can become airborne during trenching and road excavation. Third parties can be exposed by inhalation of these contaminants.

Underground Utility Strikes

Underground utilities, such as gas lines, water and sewage pipes, and unknown hazards, such as abandoned storage tanks, can be accidentally punctured by construction equipment, causing the release of fuel oil, chemicals, toxic gases, or sewage, which can contaminate soil and groundwater, or release hazardous air emissions, and result in cleanup costs, bodily injury, and third-party property damage claims.

Accidents During Transport / Loading / Unloading

Accidents involving vehicles, such as a rollover, upset, or spills during loading/unloading, could cause the release of materials such as paints and seal coats, asphalt, concrete, or fluids from transported heavy equipment. Releases can contaminate soil, groundwater, or surface waters. Jobsite wastes may contain hazardous materials. Improper handling or improper mixing with non-hazardous materials could result in environmental contamination, tort liability, and fines or penalties.

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

Natural Resource Damage

Silt & Sedimentation

Sudden and accidental coverage for owned/leased locations

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

First and third-party transportation pollution liability

Loading and unloading

Non-owned disposal site liability

First-party emergency response costs

Claims Scenarios & Examples

A property owner was expanding their facility and hired a paving contractor. The contractor intended to finish the asphalt parking lot and drive area the next day and sprayed an oil-based binding layer on crushed aggregate. Heavy overnight rain caused the binding layer to run-off into soil and groundwater, contaminating residential wells. Total cleanup costs exceeded $500,000.

A street and road contractor applied a sealing coat on a new concrete parking garage beside a hospital. While the sealant was being applied, fumes migrated into the hospital’s air intake system. Several patients and hospital staff became sick from the fumes. Lawsuits over $1 million for bodily injury were filed.

A nearby resident sued a street and road contractor working on a major highway reconstruction project for bodily injuries. She alleged that her respiratory illness was caused by the fugitive dust created by the highway construction operations, and she sued all entities that worked on the project.

While repaving a highway, a street and road contractor’s dump truck accidentally backed into a mobile refueling tank. The tank ruptured, releasing 300 gallons of diesel fuel on the surface, which migrated into a nearby storm drain. A costly cleanup was required.

A street and road contractor excavated soil in an active intersection to prepare for replacing stormwater inlet boxes. During the work, the excavator equipment overheated and caught fire. The fire severely damaged the excavator, resulting in a release of hydraulic fluids and diesel fuel. Water from the firefighting activities spread the hydraulic fluid and fuel to surrounding soils and into a nearby stream via the stormwater inlet.

While a paving contractor was transporting a mobile asphalt plant to a jobsite, a valve broke off. As a result, oil spilled onto the highway, resulting in multiple automobile accidents and the highway being shut down for several hours for cleanup.

A paving company used an asphalt grinder on a project, and as they started to grind the pavement, the metal teeth of the grinder ripped a gas line. A spark caused a fire to erupt, which also damaged the grinder and resulted in a release of hydraulic fluid. Quick response from fire crews prevented extensive damage but required firefighting foam to control the blaze. The contractor paid the emergency response and cleanup costs.

An asphalt paving contractor was hired to pave a parking lot for a new commercial structure. Before finishing work for the day, a tack coat was sprayed onto the surface before paving. An overnight thunderstorm caused the tack coat to wash off and flow into a nearby stream. The general contractor who hired the paving contractor was responsible for cleanup costs. To recoup these costs, the general contractor withheld the subcontractor’s payment, and the subcontractor filed a claim with his general liability insurance company to recover the lost revenue. The insurance company denied reimbursement based on the absolute pollution exclusion under the general liability policy.

A street and road contractor was working on an abutment for a highway overpass; however, the contractor did not implement adequate erosion control measures, and petroleum-contaminated sediment in the abutment migrated into a waterway. The contractor was required to pay the cleanup costs, which surpassed $150,000.

A contractor was building a road where the water table was extremely shallow, requiring dewatering operations. After wells were drilled and groundwater was extracted, the contractor smelled petroleum in the groundwater. It was discovered that a leaking underground storage tank near the project site had contaminated the groundwater. The dewatering operations pulled the contaminated groundwater beneath the road construction area. Because the contractor had exacerbated the extent of the contamination, the contractor was required to clean up the soil and groundwater. The total cost of the cleanup exceeded $100,000.

A street and road contractor hired a subcontractor to perform abrasive sandblasting. This work caused lead paint chips and dust to become airborne and migrate onto nearby residential properties, requiring cleanup. The residents filed property damage claims against the subcontractor and the street and road contractor.

A road construction company was issued an administrative compliance order with an $817,000 civil penalty by the state environmental agency. During the construction of a new road, the company removed piping that turned out to contain asbestos. The contractor handled the pipe as solid waste and placed it in a construction and demolition debris dumpster. The environmental agency alleged that the company did not properly handle, label, contain, transport, or dispose of the more than 1,000 cubic yards of material that contained asbestos waste.

Contractors

Paving/Street/Road

Environmental Exposures May Include: