Property Types

Recycler - Green Waste

Green waste recyclers can face many environmental exposures from the materials brought on-site, treatment processes conducted, and wastes that are generated. Green wastes include fresh or biodegradable waste materials, including grass, leaves, plants, and yard trimmings. These wastes can contain chemicals and materials that may be hazardous. If contaminants remain in products produced from green waste recycling, including mulch or compost, customers could be injured, or environmental impacts could result. Equipment used to move and process the materials can contain fuels and hydraulic fluids that can have a release that causes environmental risks.

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Environmental Exposures May Include

Pesticides
Improper Solid Waste Disposal
Storage Tanks
Fuel Spills
Odor and Dust Nuisances
Compost Spontaneous Combustion
Wastewater Management
Stormwater Run-off

Pesticides

Green wastes can be contaminated with pesticides, herbicides, or fertilizers. Damage to vegetable and flower crops can occur after applying compost or mulch containing persistent pesticide residues, resulting in third-party property damage claims.

Improper Solid Waste Disposal

Solid wastes, such as metals, clay pottery, etc., may be present in green waste. These must be separated and properly disposed of at a solid waste landfill. Improper disposal of wastes can lead to environmental tort liability and cleanup costs.

Storage Tanks

If present at a green waste recycling facility, spills or leaks can occur from aboveground storage tanks, underground storage tanks, transfer hoses or piping. If secondary containment is not provided or the integrity of the tank, secondary containment, or piping has been compromised, contaminants can migrate into the subsurface, causing various environmental risks.

Fuel Spills

Sizing, separating, and shredding equipment; spreaders, backhoes, forklifts, conveyors, and trucks may be among the equipment used for conducting business. Petroleum-based fluids may leak from equipment, vehicles used on-site, at pickup sites, in transit between pickup and drop-off points, or parked in the yard. They could also leak or spill during maintenance or fueling. Petroleum fluids, including diesel fuels, hydraulic fluids, cleaners, and coolants, may be present. Releases can contaminate soil, be carried off-site in stormwater run-off, or contribute to fire hazards. Idling diesel tractor-trailers may also produce significant localized toxic exhaust emissions, leading to third-party bodily injury claims.

Odor and Dust Nuisances

Odors generated from the biodegradation of green wastes and dust can be generated from mobile equipment used at recycling facilities. These can be a nuisance and irritant to neighboring properties, resulting in claims for third-party bodily injury or diminution of property value.

Compost Spontaneous Combustion

Fire hazard within compost piles is of particular concern. Excessive temperatures in compost can cause spontaneous combustion. Firewater run-off could contain pollutants impacting soils, groundwater, or surface water. Smoke and dust can be generated from firefighting that can be a nuisance or irritant to neighboring properties and result in claims for third-party bodily injury.

Wastewater Management

Cleaning of trucks used to transport green wastes or equipment used to process green wastes may generate wastewater or sludge. These waste materials must be taken to a non-owned disposal facility or wastewater treatment facility. Spills could occur during cleaning or from sludge or wastewater storage areas, creating environmental risks. Improper waste disposal could lead to environmental liability or legal consequences for violating regulatory requirements.

Stormwater Run-off

Stormwater may come into contact with green and solid wastes stored on-site and become impacted by particulates, pesticides, or other contaminants. If stormwater is not properly controlled, contained, or pre-treated before discharge into sanitary or storm drainage systems, it can pollute soil and groundwater or discharge directly into surface waters, impacting human health and aquatic systems.

Environmental Pollution Liability Can Provide Coverage For

Integrated GL/Site Pollution, options to include XS, Auto, and Workers’ Compensation may be available

Monoline Site Pollution Liability

Third-party claims for bodily injury and property damage

First-party and third-party cleanup

Defense of third-party claims

Natural resource damage

First and third-party transportation pollution liability

Loading and unloading

Products pollution liability

Crisis/reputation management

Civil fines and penalties

Off-site services pollution liability

Business interruption expenses

Non-owned disposal sites

Emergency response costs

Claims Scenarios & Examples

Due to improper stormwater run-off control at a green waste recycling facility, the run-off discharged into a nearby lake over several years. The nitrogen and phosphorus in the run-off caused algae to bloom in the lake, leading to low dissolved oxygen and fish kill. The company faced a lawsuit for natural resource damages.
A study investigated groundwater quality downgradient of several facilities that conducted mulching operations. Results showed that the drinking water wells had high levels of metals and pesticides. The public water suppliers had to install treatment systems on the wells, homeowners nearby had to test their water quality, and those with high constituent levels had treatment systems installed. The mulching facility required further investigation along with remediation.
A waste composting facility accepted and processed waste after its permit expired. Other permit violations included allowing a fire at the facility to spread to incoming waste piles, failure to process landscape waste promptly, and failure to prevent the ponding of landscape waste leachate. The facility was fined $200,000 for the violations.
A compost facility was sued for causing odors that impacted the community. City governments and community groups sued, alleging $425 million in damages, including property devaluation, lost tax revenues, and other costs from the smell.
A green waste recycling center experienced an after-hours fire in one of its mulch piles. The fire caused a large plume of smoke to fill the air, and several nearby homeowners had to evacuate. They sued the recycler for bodily injury and property damage.
A green waste recycling facility collected and processed residential and commercial trash, yard trimmings, curbside recyclables, food waste, and construction and demolition debris. It was found that run-off from the site was polluted with high levels of metals and oils. A community group sued the company for impacting the nearby surface waters.
Mulch from a green waste recycling facility was contaminated with herbicides. The mulch was applied to several farms, and the herbicides damaged the crops. The company faced claims for property damage as a result.

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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