Property Types

Plant & Tree Nurseries

Nurseries face environmental exposures from various operations and materials used and stored at the site. Nurseries use chemicals such as fertilizers, herbicides, pesticides, and other potentially hazardous materials. These materials are stored on the property and have the potential to be released into the environment. Improper application, management, and storage of fertilizers and other chemicals can cause spills that may enter nearby storm drains that discharge into rivers, streams, lakes, or a wastewater treatment facility. Additional exposures may include leaks of fuel and fluids from powered equipment; the storage, use, and disposal of hazardous materials; the generation of wastewater; and mold and bacteria exposures at the facility.ration of wastewater; and mold and bacteria exposures at the facility.

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Environmental Exposures May Include

Agrochemical Over-Application & Stormwater Migration
Phosphorus Runoff & Aquatic Ecosystem Eutrophication
Nursery Soil Compacting & Sediment Erosion Controls
Uncovered Nursery Yard Storage & Stormwater Run-off
On-Site Fuel Storage & Nursery Machinery Leaks
Chemical & Agricultural Waste Transportation Liability
Irrigation Misting Systems & Legionella Pathogen Exposure
Building Envelope Moisture Intrusion & Greenhouse Mold
Recycled Irrigation Water & Agricultural Pathogen Risks
Pesticide Rinsate Disposal & Cradle-to-Grave Liability
Illicit Property Dumping & Illegal Waste Abandonment

Agrochemical Over-Application & Stormwater Migration

Improper management, misuse, over-application, or releases of fertilizers, pesticides, herbicides, and other chemicals utilized at the nursery may result in releases that, if not properly contained, could collect and migrate off-site in stormwater and enter sewer drains, causing damage at wastewater treatment plants, or enter storm drains and impact surface waters. They could also leach into the soil and contaminate groundwater.

Phosphorus Runoff & Aquatic Ecosystem Eutrophication

Fertilizers that migrate into natural resources can cause a great deal of harm. Phosphorus is the main ingredient in synthetic fertilizers and can deplete oxygen supplies in lakes, rivers, and streams and lead to the growth of toxic blue-green algae, which can harm aquatic life.

Nursery Soil Compacting & Sediment Erosion Controls

Cultivation activities at nurseries may reduce ground cover and compact the soil, increasing run-off and soil erosion and resulting in larger volumes of stormwater run-off contaminated with silt and sediment. Improper erosion controls can allow run-off of silt and sediment into water systems, severely damaging water quality, adversely affecting channel stability, and causing ecological damage that threatens wildlife and aquatic systems.

Uncovered Nursery Yard Storage & Stormwater Run-off

Exposure of nurseries to weather elements creates a significant risk for stormwater run-off to collect chemicals, oils, pesticides, silt, and sediment. Stormwater encountering uncovered waste storage areas, including trash, debris, and other solid waste, such as pallets and fertilizers, herbicide, and pesticide containers, could also mobilize contaminants and enter nearby storm sewers, drywells, or surface waters. If stormwater run-off discharges into sanitary or storm drainage systems before treatment, it can pollute soil and groundwater or enter surface waters, impacting human health and natural resources.

On-Site Fuel Storage & Nursery Machinery Leaks

Nurseries may use aboveground or underground tanks to store fuel for equipment on-site. Leaks from storage tank systems, spills during fueling, or leaking fluids from vehicles and powered equipment used at a nursery can contaminate the soil, groundwater, or surface water. Releases to surface water may cause damage to natural resources such as fish, wildlife, biota, and air and negatively impact local drinking water sources.

Chemical & Agricultural Waste Transportation Liability

Accidental releases while transporting chemicals, wastes, or wastewater from a nursery due to improper cargo securement, a loose valve, or vehicle accidents can result in environmental liability.

Irrigation Misting Systems & Legionella Pathogen Exposure

Legionella is a bacterium that causes a form of potentially fatal pneumonia. Legionella can thrive in water-containing systems like air conditioning, heating and cooling, plumbing, misters, and water features. Poorly maintained systems and inadequate corrosion control or sanitation can result in Legionella growth and dispersal through mist and airborne droplets. Exposure can result in illnesses such as Legionnaires’ disease and Pontiac Fever.

Building Envelope Moisture Intrusion & Greenhouse Mold

Mold could develop from moisture intrusion due to storms, flooding, or leaking water pipes, sprinklers, and HVAC systems. Many buildings are flat-roofed, where pooled water can be absorbed by the roofing material and seep into sub-roof areas. Mold can also develop within HVAC systems (air handling units, coils, and ductwork) or from improper building ventilation or humidity management of climate-controlled storage.

Recycled Irrigation Water & Agricultural Pathogen Risks

Recycled water may be used at a nursery site. This water could contain plant pathogens as well as bacteria and viruses, which can lead to the spread of diseases. Improper use or failure to test and treat recycled water for sanitization and preventative control practices could lead to soil contamination and third-party liability.

Pesticide Rinsate Disposal & Cradle-to-Grave Liability

Nurseries can generate wastes they dispose of at non-owned disposal sites, including pesticides, fertilizers, and automotive fluids from equipment used on the property. Pesticide waste can include rinse material from containers and spray equipment, leftover spray solutions, and excess pesticides. These wastes can be classified as hazardous and must be disposed of at facilities permitted to accept this material. Waste generators retain “cradle-to-grave” liability for their waste disposal.

Illicit Property Dumping & Illegal Waste Abandonment

Illicit abandonment is the illegal dumping of pollutants on a property by a third party. It can become the property owner’s burden for cleanup and third-party bodily injury or property damage if law enforcement cannot locate the originator of the waste.

Environmental Pollution Liability Can Provide Coverage For

On-site cleanup of new and pre-existing pollution conditions

Of-site cleanup of new and pre-existing pollution conditions

Third-party claims for bodily injury and property damage

Third-party claims for cleanup

Both sudden and gradual pollution conditions

Defense costs for third-party claims

Non-Owned Disposal Sites

Above and underground storage tanks

Mold, bacteria, legionella, and more

First and third-party transportation liability  

Loading and unloading  

Natural resource damage

Silt and sedimentation

Emergency response costs

Civil fines and punitive damages, where allowed by state law

Business Interruption expenses

Illicit abandonment

Claims Scenarios & Examples

A landscaper was hauling and disposing of soil for a garden center. When taking it to different environmental disposal facilities, high levels of asbestos were discovered in the soil. The landscaper had to take the soil back, and they were banned from doing further business at those dumps. The landscaper sued the garden center for $10 million in damages for not disclosing the asbestos.
As part of a land application process, a commercial nursery used treated wastewater as a fertilizer. The nursery did not test the wastewater before applying it. After several months, heavy metals and high levels of e.coli were found in the soil. The nursery faced remediation costs that exceeded $265,000.
A nursery was transporting pesticides and fertilizers on one of their pickup trucks from one location to another. The truck hydroplaned and overturned, causing the pesticides and fertilizers to spill from the containers. An emergency response crew responded to clean up the release, and the nursery was liable for the cleanup costs.
Over several years, stormwater from a commercial garden migrated into a stream that led to a lake. As a result, excessive algae and bacteria grew in the stream and the lake. Riparian property owners filed claims against the garden for property damage, loss of enjoyment, natural resource damages, and perceived bodily injury. The claim expenses surpassed $2 million.
During a property transfer, a property owner had his water well tested. Results showed that petroleum hydrocarbons were present. Further investigation found that the contamination was from an unknown underground storage tank used to heat the neighboring commercial garden’s greenhouses. Other nearby properties also tested their well water, and contamination was found there too. The commercial garden faced costs to dispose of the tank and clean up the contaminated soil and groundwater, along with claims for bodily injury and property damage from the neighbors that surpassed $3 million.

Final Consideration

Your business can be faced with the cost to defend itself against allegations or legal action from pollution related events, regardless if you are 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.

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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