ERP - Environmental Risk Professionals

Chemical Leaching

Tires contain toxic materials that can pose environmental hazards during storage and processing. Most tires contain rubber compounds containing various chemicals, such as sulfur, carbon black, synthetic rubber, and silica. Some of these chemicals are carcinogenic and mutagenic. Tires may also contain heavy metals, including high levels of zinc, aluminum, chromium, cadmium, iron, and nickel. Tires stored and exposed to weather elements will break down and leach chemicals, microplastics, and heavy metals into the environment. Leaching affects the soil around the old tires, and pollutants can migrate to groundwater or be carried from stormwater to surface waters.

Tire Fire Liabilities

Fires at storage sites with stockpiled tires can result in significant air, ground, and water pollution. As tires burn, they break down into hazardous compounds, including toxic gases, heavy metals, and oils which can contaminate soil, groundwater, or surface water. Smoke and air emissions containing toxic constituents such as carbon monoxide, benzene, styrene, butadiene, phenols, and polycyclic aromatic hydrocarbons are also generated during a fire, are hazardous to human health, and can impact surrounding third parties. Fire-extinguishing water run-off can also carry contaminants to nearby properties or discharge into water systems. These fires can be difficult to extinguish and can go on for extended periods.

Equipment Fluid Leaks

Conveyor belts, sorting machines, and other production equipment may leak lubricants, oils, greases, or fuels. If a hauling truck fleet is used to handle materials, associated fueling and maintenance spills, leaks, and accidents may occur. Pollutants, including fuels, hydraulic fluids, and coolants, may also spill or leak from stored stock supplies or from wastes such as waste oils and fluids. Releases can contribute to fire hazards and contaminate soil, groundwater, and surface water.

Stormwater Run-off

The facility’s exposure to weather elements creates a significant risk for stormwater run-off to collect oils, applying pesticides, and leached chemicals and heavy metals. Contaminated run-off can discharge into water systems or adjacent properties, leading to environmental cleanup, human health hazards, and natural resource damage. Stormwater run-off from tire storage areas may fall under state or federal regulations.

Mosquito Disease and Rodent Infestation

Stockpiled tires are breeding grounds for disease-carrying pests, such as rodents and mosquitoes, which can impact neighboring third parties. Rodents can inhabit tire piles, and mosquitoes can breed in the water that collects inside tires. Several varieties of mosquitoes can carry deadly diseases, including encephalitis and dengue fever.

Volatile Organic Compounds (VOCs)

Pyrolysis may be performed at some facilities. Volatile organic compounds (VOCs) and particulates can be emitted from fugitive sources, creating hazardous air emissions. VOC fugitive emissions can occur from leaks due to worn or loose packing around pump shafts and valve stems, from loose pipe connections (flanges), compressors, storage tanks, and open drains. Particulate fugitive emissions can occur during the handling and processing of char or from operations such as screening, grinding, and processing. Wastewater can also be generated as a by-product and is likely to be contaminated with constituents found in pyrolysis oil, such as benzene and toluene. Spills or leaks from storing pyrolysis products, such as oil, can also create environmental liability.

Tire-Derived Products

Recyclers may be in the distribution chain of recycled tire-derived products. These products, such as synthetic turf used in athletic fields, playgrounds, landscape mulch, and rubberized walkways and trails, could expose the end-user to contaminants and the recycler to product pollution liability.

Environmental Pollution Liability Can Provide Coverage For

Integrated GL/Site Pollution, options to include XS, Auto, and WC 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

Emergency response costs

Natural resource damage

First and third-party transportation pollution liability

Civil fines and penalties, where allowed by state law

Loading and unloading

Products pollution liability

Crisis/reputation management

Off-site services pollution liability

Business interruption expenses

Non-owned disposal sites

Claims Scenarios & Examples

A tire recycler conducted stockpiling, shredding, and recycling operations. One day a stockpile tire fire ignited at their location and burned for five days. Firefighters used roughly ten million gallons of water to put out the fire. The fire suppression water became contaminated, resulting in water cleanup costs for the recycler of approximately $660,000. The company sought coverage from their CGL policy, but the carrier denied all cleanup claims based on the policy’s “absolute pollution” exclusion.

A tire recycler was found to have been storing and disposing of unauthorized municipal solid waste, including 27,975 tons of scrap tires and shredded tire pieces, several storage containers of unknown contents, used oil filters, and buckets of oil. The recycler had also failed to prevent the discharge of unauthorized waste into or adjacent to water. Soil samples were collected, and total petroleum hydrocarbon (TPH) and metal contamination were detected on-site and off-site. The recycler was fined $45,000 for these violations and required to perform remediation of the contamination.

A tire recycling company experienced a fire that resulted in contaminated soil that had to be removed from the property. The site investigation discovered that the recycler had exceeded its allowed volume of tires and had not correctly stored the tires or maintained fire lanes, resulting in an environmental protection enforcement lawsuit for violations of the state’s solid waste management laws. They had also failed to submit required reports and notify the Department of Natural Resources of problems and changes to their facility. The tire recycler paid $320,000 in penalties and costs for violations and another $75,000 in expenses to properly dispose of the contaminated soil.

Rainwater was collected inside tire piles at a tire storage and disposal facility. The warm climate and standing water in the tires attracted and became a breeding ground for rodents, mosquitoes, and other insects. Nearby residents complained of the offensive odors emanating from the facility. They then voiced concern over the potential for illnesses from rodents and insects. They filed a $7 million suit against the facility for perceived bodily injury, potential future medical expenses for their children, and veterinary expenses for their pets.

A tire recycling facility was storing solvents on-site. The solvents leaked into the ground, contaminating the adjacent community’s water supply. The community incurred costs to design, construct and maintain a groundwater treatment plant to help protect their water supply. As a result, they sued the tire recycling facility to recover these expenses.

A tire recycling facility violated the Clean Water Act for discharging pollutants into a local waterway without a permit, including benzene, vinyl chloride, chloromethane, toluene, and other substances. These violations negatively affected the river, caused harm to aquatic life, and made the water less suitable for activities such as fishing, boating, wading, etc. The plaintiff asked the court to assess fines and penalties against the recycler for the violations.

A tire recycler experienced a fire. Although the fire was contained in a wire pile and some rubber chip piles, toxic fumes, and particulate matter spread to the surrounding areas. Residents sued the facility for damage and injury due to inhalation of the smoke.

Property Types

Recycler - Tires

Environmental Exposures May Include