The term pesticide covers many compounds, including insecticides, fungicides, herbicides, rodents, molluscicides, nematicides, and plant growth regulators.
Pesticides and fertilizers contain toxic materials that pose health risks to humans, animals, aquatic organisms, and plants. Exposure may result in neurotoxicity, liver or kidney toxicity, respiratory issues, headaches, vomiting, or nausea. More than 90 percent of water and fish samples from all streams contained one or even several pesticides. The USGS also found that concentrations of insecticides in urban streams commonly exceeded guidelines for protecting aquatic life.
Airborne migration of pesticides and fertilizers is an insidious threat to human health, wildlife, and ecosystems in and around agricultural areas or residential areas where harsh chemicals are used to treat lawns. Children are especially vulnerable to these airborne pesticides because their young bodies are still growing and developing.
An accident or container breach could cause a leak or spill of pesticides, fertilizers, or automotive fluids from powered equipment during transportation, loading, and unloading, resulting in cleanup or environmental tort liability. During transportation, dry particulates that are loose can also blow off if they are not properly covered or secured, which can cause air contamination.
Chemicals in the products vary in strength and formulation, but all contain semi-volatile and volatile organic compounds (SVOCs, VOCs), which act as the active ingredient, stabilizer, or carrier agent. Overuse, misapplication, and spills of products pose the greatest exposure and health risk. However, even when the application is conducted by professionals and per manufacturer instructions, adverse health effects can occur due to inadequate ventilation or insufficient attenuation before building reoccupation.
Leaks, spills, or over-application can contaminate soil and surface or groundwater. Applications made before heavy rains, on saturated soils, or hard surfaces, such as concrete, can also contribute to contaminated stormwater run-off. Run-off in outdoor areas may carry the pesticides and fertilizers off-site and possibly into storm drainage systems, where they are discharged to surface water and impact aquatic systems. Vegetative wastes that have had over-application or retain persistent chemicals will also likely contaminate a disposal site.
Site application of fertilizers may result in ground or surface water contamination or health impairment. Over-application, shallow water tables, and stormwater run-off may cause this, particularly if nitrification inhibitors like nitrapyrin or dicyandiamide are present. Phosphorus, a main ingredient in synthetic fertilizers, encourages the growth of algae, which depletes oxygen out of lakes, rivers, and streams and can harm aquatic life or lead to the growth of toxic blue-green algae.
Storage at any owned/leased operational facility of these products carries environmental exposure. Spills, improper storage containment, and exposure to rainfall can cause chemicals to run-off and contaminate surface water, groundwater, and soils, resulting in cleanup and potential natural resource damage claims. Storage of concentrated ammonia-based fertilizers may react with other stored incompatible materials (e.g., lime, urea, nitrates, and sulfur) if leaked or spilled, resulting in a fire or emitting air pollutants.
Pesticides and fertilizers can fall under hazardous waste and require special disposal procedures. Pesticide waste can include rinse material from containers and spray equipment, leftover spray solutions, and excess pesticides. Improper handling and disposal can lead to contamination of soil, groundwater, and surface water, causing cleanup and third-party liability. Several federal and state laws regulate pesticide waste disposal, and improper disposal can also result in fines for the contractor.
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
First-party emergency response costs
First and third-party transportation pollution liability
Sudden and accidental coverage for owned/leased locations
Mold, legionella, bacteria, fungi, lead, asbestos, and more
Loading and unloading
Non-owned disposal sites
Natural resource damage
Defense of third-party claims
As a contractor you can be faced with the cost to defend yourself against allegations or legal action from pollution 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 environmental claims handling expertise.