Contractors

Pesticide, Herbicide & Fertilizer

Applicators of growth-producing or pest-inhibiting chemicals face environmental exposure that can lead to third-party bodily injury, property damage, and cleanup due to a pollution incident. About one billion pounds of these chemicals, spanning over 21,000 products, are registered under Federal environmental law. Leaks, spills, misapplication, or over-application of these chemicals can contaminate soil, groundwater, and stormwater run-off, leading to third-party liability and natural resource damage. Additional environmental exposures can result from storing, transporting, and disposing of these materials.

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Environmental Exposures May Include:

Identification of Pesticide Agents
Toxic Materials
Airborne Chemical Migration
Transport and Handling
Volatile Organic Compounds
Surface and Groundwater Contamination
Fertilizer Misapplication
On-Site Chemical Storage
Hazardous Waste Disposal

Identification of Pesticide Agents

The term pesticide covers many compounds, including insecticides, fungicides, herbicides, rodents, molluscicides, nematicides, and plant growth regulators.

Toxic Materials

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 Chemical Migration

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.

Transport and Handling

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.

Volatile Organic Compounds

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.

Surface and Groundwater Contamination

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.

Fertilizer Misapplication

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.

On-Site Chemical Storage

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.

Hazardous Waste Disposal

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.

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

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

Claims Scenarios & Examples

A couple had a pest control company spray their home. After the work was complete, they returned home, and the wife suffered cardiac arrest and died. The husband sued the pest control company for $2.5 million, claiming her death was due to the pesticide sprayed. The pesticide was not known to be toxic to mammals; however, inhaling it could cause respiratory irritation and increased heart rate. The employee that sprayed the home was unlicensed to spray residential properties, sprayed more chemicals than was needed, and had not properly ventilated the home or told the couple to do so.
Field workers at a farm were working when they noticed an extreme odor from a nearby truck. The truck was spraying the orchard across the street with pesticides. The workers called 911, reporting illness due to the pesticides being sprayed. The first responders and farm workers needed hazmat decontamination to clean off all pesticide residue, and five of the farm workers went to a medical center to be treated for nausea and vomiting.
A woman and her family became sick after a lawn care applicator sprayed chemicals nearby. Soon after the chemicals were sprayed, the woman experienced burning in her chest and throat, and her children became dizzy and experienced stomach aches. After a year of doctor visits, she was told that she had pesticide poisoning and that the damage was irreversible. The woman and her young son developed a chemical sensitivity that impacted her job and his schooling, and they continued to have health problems that included shortness of breath and dizziness.
A semi-truck was transporting pesticides and herbicides when it was involved in an accident. The truck tipped and landed on its side. The trailer was punctured, and powder spilled out. When firefighters came to the scene and noticed the spill, they declared it a hazmat situation. Firefighters believed some spilled chemicals migrated into a storm drain before they could contain it.
A pesticide application contractor discovered a leak in an underground storage tank containing pesticides. The pesticide contaminated the soil and groundwater of the contractor’s property along with the neighboring third-party property. Cleaning up the site and decontaminating the soil and groundwater were significant costs.
When spraying pesticide on a farm’s fields, the company accidentally applied metam-sodium. The chemical migrated in the air to a nearby neighborhood where more than 250 people were affected. Dozens of the residents sued the pesticide company, who then agreed to pay a $60,000 fine and paid 84 residents $500,000. The farm that was sprayed also paid $275,000 to the residents.
A large lawn care company was sued for multiple violations of spilling pesticides into bodies of water and storm drains in several cities, along with other violations of improper pesticide application and recordkeeping. The company paid a $150,000 fine and agreed to share its pesticide handling and storing plans and improve its spill control and response plans.

Final Consideration

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.

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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