Historical Land Use and Strict Liability
Prior land use, such as manufacturing, industrial facilities, gas stations, and dry cleaners, could have contaminated soil and groundwater with heavy metals, chemicals, and petroleum products at the site. Aboveground storage tanks (ASTs) and subsurface structures, including underground storage tanks (USTs), may have also operated on the site or get discovered during property development. Pollutants could migrate and enter drywells and storm drains, damage sewer systems and contaminate soils and groundwater on the site and neighboring properties. Since pollution laws fall under the doctrine of Strict Liability, no negligence standard is required, and the property developer may be held responsible for addressing cleanup or remediation of the property, even without prior knowledge.
Abandoned Legacy Tenant Waste
Property developers may be held responsible for any contamination or cleanup of pollutants from previous activities. A release of hazardous materials could have resulted from improper storage, containment breaches, and leaks or spills of materials. Previous occupants may also leave behind hazardous materials.
Heavy Equipment and Refueling Tank Leaks
Heavy equipment and portable refueling tanks may be brought to the property. Release of fuels, lubricants, oils, and chemicals resulting from accidental spills or leaks, or vandalism can discharge pollutants into the soil and groundwater and require cleanup.
Soil Erosion
During excavating and grading work, there could be a large proportion of bare ground and exposed earth that leaves soil highly vulnerable to erosion by wind and water. Improper erosion control can lead to surface run-off of silt and sediment, impairing the proper functioning of stormwater drainage systems, causing ecological damage to streams and rivers, and causing adjacent property damage.
Radon Gas
Radon gas could be discovered during site development and may require mitigation to remove it. Radon gas is the second leading cause of lung cancer in humans. Radon gas could be discovered in newly constructed homes or buildings on the developed property. Construction techniques must help mitigate the radon in new structures, including homes, apartments, or office buildings.
Asbestos
Existing buildings could be contaminated with asbestos-containing material (ACM) or lead. ACM may be present in older buildings in duct insulation, piping, furnaces, boilers, tanks, and fireproofing insulation. ACM may also be present in ceilings, walls, flooring tile, and mastic. Lead could be present in paint or water pipes and solder used during the construction of the buildings Tort claims may result from accidental disturbance during demolition, renovation, construction, or interior remodeling.
Waste Management
Wastes collected from the site or generated during development operations could be hazardous. Improperly segregated and disposed of wastes can result in regulatory fines or lead to cleanup and environmental tort liability.
Mold
Mold may be present in buildings from moisture intrusion due to storms and flooding or from leaking water pipes, sprinklers, and HVAC systems. Mold could also develop in HVAC systems, such as air handling units, coils, and ductwork, or from improper building ventilation or humidity management of climate-controlled storage while the building was in use.
Toxic Smoke
A fire at the buildings on a site could emit toxic fumes and smoke from the materials stored in the buildings or due to a mix of materials that occurs due to the fire. Firefighting solutions such as water and foam could create contaminated run-off that spreads to nearby storm drains or properties, resulting in environmental cleanup and tort liability.
Illicit 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.
Landfill Contaminant Off-Site Migration
Although unlikely, a situation may occur where the property may have been an abandoned landfill. Contaminants from landfills can potentially migrate off-site and contaminate neighboring properties, causing third-party property damage and third-party bodily injury claims against the developer.
Environmental Pollution Liability Can Provide Coverage For
On-site cleanup of new and pre-existing pollution conditions
Off-site cleanup of new and pre-existing pollution conditions
Third-party claims for bodily injury and property damage
Third-party claims for clean up
Both sudden and gradual pollution conditions
Aboveground and underground storage tanks
Mold, bacteria, viruses, legionella, and more
Civil fines and punitive damages, where allowed by state law
Business interruption resulting from pollution conditions
First and third-party transportation pollution liability
Loading and unloading
Defense costs for third-party claims
Silt and sedimentation
Illicit abandonment
Natural resource damage
Diminution in value
Non-owned disposal sites