ERP - Environmental Risk Professionals

Grease Traps

Poor maintenance of grease traps and leakage from grease traps are leading causes of environmental liability and regulatory fines for restaurants. Grease traps and interceptors must be properly sized, installed, and maintained. Improper maintenance or containment of grease waste can result in a release that could contaminate an off-site adjacent property or enter a drain system. Storm drain and sewer pipes may directly lead to local water systems without treatment. Grease that enters sewer and storm drains can also cause a clog and result in a buildup of toxic hydrogen sulfide gas or a sewage backup spill.

Grease Waste

Exposures from grease waste can include soil or groundwater contamination, clogged drains or sewer lines, natural resource damage, and exposure to bacteria and infectious diseases by third parties that come in contact with it. Improper disposal and leaks or spills during loading, unloading, or transporting grease waste or wash water are additional exposures that can lead to environmental cleanup and tort liability. The transportation, disposal, or recycling of spent grease waste and wastewater may fall under environmental regulation. As the waste generator, the restaurant retains liability for improper or illegal disposal, whether or not a third-party service is used.

Cleaning Chemicals and Solvents

Restaurants store and use various cleaning chemicals and solvents, including ammonia, bleach, chlorine, and degreasers. Leaks or spills from improper storage, containment breaches, or during loading and unloading could enter drains that impact adjacent properties or water systems. Mishandling, spills, or mixing of these chemicals could also result in a toxic vapor cloud that poses an inhalation hazard to third parties. These chemicals or spent solvents may fall under hazardous waste and require regulated disposal and recycling procedures. Improper management and disposal of these materials could lead to cleanup and third-party liability.

Pesticides

Improper use, storage, or application of pesticides, insecticides, and rodenticides can lead to environmental exposure. Leaks, spills, or over-application can contaminate soil, surface, or groundwater, impacting adjacent properties and stormwater run-off.

Wastewater Management

Wastewater discharge from equipment cleaning, exhaust systems, filters, and storage containers may contain contaminants such as grease, oil, fats, cleaning chemicals, and solvents. This wastewater can be subject to environmental regulatory action, fines, and penalties. If not properly managed and contained, it can enter drains and pollute storm sewers, streams, or other water systems, leading to liability for cleanup, tort, and natural resource damage. Grease, fats, and oils in wastewater can cause blockages in on-site sewage disposal systems and public sewer systems. Wastewater contaminated with cleaning chemicals and solvents can enter storm drains and cause serious pH or foaming problems in streams, lakes, ponds, and other waters.

Biological Hazards and Mold

Restaurants are susceptible to mold, virus, and bacteria growth from various sources, including ice bins, improper disinfection of equipment, and leaks in appliances or plumbing systems. Ice machines that are not cleaned regularly and thoroughly can cause mold growth and spread hazardous bacteria and viruses such as salmonella, listeria, norovirus, and e. coli. Mold growth within the structure due to moisture intrusion can lead to cleanup and environmental tort liability.

Refrigerants

Refrigeration systems, chillers, and walk-in coolers may use chemicals such as ammonia, hydrofluorocarbons (HFCs), or chlorofluorocarbons (CFCs). Freon is the commercial name of a refrigerant gas containing halocarbons used with refrigeration systems. Anhydrous ammonia is a flammable gas with the potential for explosions and fire. Improperly operated, inspected, or maintained systems can result in an accidental hazardous release of these chemicals. Refrigerants could be released during the service, repair, maintenance, or disposal of units. Sources of leaks may be from seals, flange gaskets, open valves, and sheared lines and can result in significant contamination of raw materials and finished goods. Exposure to humans, including workers, visitors, and third parties, may result in death or other respiratory illnesses.

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 cleanup

Both sudden and gradual pollution conditions

Aboveground and underground storage tanks

Non-owned disposal sites

Mold, bacteria, viruses, legionella, and more

Business interruption resulting from pollution conditions

First and third-party transportation pollution liability

Loading and unloading

Defense of third-party claims

Illicit abandonment

Claims Scenarios & Examples

The grease interceptor of a restaurant steadily leaked grease, sewage, and contaminated fluid into the ground and migrated to a nearby homeowner’s property, causing significant property damage. The homeowner sought $800,000 from the restaurant for property damage and loss of use and enjoyment.

A bowling alley sued the restaurant above their facility for the second time in three years. The alley alleged that the restaurant’s grease trap repeatedly failed, leaking thousands of gallons of grease, detergent, and foul water onto the alley’s equipment. After settling the first lawsuit, the restaurant hired a plumbing expert; however, the alley was still flooded with water, grease, and other unknown liquids from the grease trap and other kitchen equipment. The flooding equaled more than 1,000 gallons and damaged bowling equipment, and the drywall in the ceiling and walls were also damaged in the alley and other tenant spaces below the restaurant. Damages were estimated at over $75,000, and lost business expenses were another $25,000.

Approximately 100 gallons of grease flowed from a restaurant’s grease trap, spilling down the street and filling a parking lot. The city responded to the incident due to public health and safety concerns and had to close the streets for eight hours and hire a contractor to clean up the spill. They held the restaurant liable for the costs of the cleanup.

A disposal company was contracted to pick up grease trap waste from several restaurants and dispose of it. Instead of disposing of the waste properly, they dumped about 570,000 gallons into the city’s sewer systems over 4 years. The disposal company was sued, and the restaurants were brought into it as well as they were the original generators of the waste.

After 18 people in a community contracted Legionnaires’ disease, an investigation was completed to identify the source. After finding common sources for all 18 patients, it was determined that a restaurant was the source of the outbreak. A small decorative fountain was found to have a strain of legionella.

Two restaurants left their joint grease traps unattended, resulting in excessive grease buildup. The city’s Environmental Service Department warned that the grease traps required cleaning but did not follow up. They were finally cleaned but were done so in a negligent way. A man, who lived near the two restaurants, breathed in the toxic fumes from the grease traps and suffered a heart attack. The restaurants and the Environmental Service Department were sued for compensation for past medical bills, future medical care, and economic losses as the heart condition limited his future earnings. The lawsuit amounted to $1.7 million.

A next-door neighbor sued a restaurant, the County Commission on Environmental Quality, and the state’s Department of State Health Services for not having a proper septic system license and overflowing the septic system. As a result of the overflow, sewage migrated onto the neighbor’s property, which was used for farming and ranching. The neighbor sued for more than $100,000 for monetary relief and asked for the restaurant’s water supply to be turned off until the septic issue could be resolved.

A large ice cream retailer experienced an ammonia leak at one of their facilities. As a result, the facility and surrounding neighbors and businesses had to be evacuated for more than six hours. Business interruption and bodily injury claims were filed.

Property Types

Restaurants

Environmental Exposures May Include