Mold
Mold growth can result from water and wastewater releases into building materials due to leaks, overflows, and blocked drains or pipes. Mold may also develop in other water systems, such as refrigeration or HVAC systems and water features.
Legionella
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 systems, and water features. It can accumulate in warm, stagnant, pooled, or infrequently drained water. Poorly maintained systems and inadequate corrosion control or sanitization can result in Legionella exposure.
Asbestos
Older buildings may contain asbestos, lead, and polychlorinated biphenyls (PCBs). Asbestos-containing material (ACM) can be found in ceiling and floor tiles, insulation, around wiring, and fireproofing on structural steel. PCBs can be found in areas such as window caulk and light ballasts. Lead could be present in paint or pipes. Claims may result from accidental disturbance or alleged exposure during renovation, construction, or interior remodeling.
"Sick Building Syndrome"
“Sick Building Syndrome”, where inhabitants suffer health problems while in a building, is often attributed to poor building design, maintenance, or a faulty ventilation system. Along with asbestos, lead, mold, and bacteria, other contributing exposures include chemicals stored on-site or found in building materials and combustion products such as carbon monoxide, pesticides, or volatile organic compounds, which can emit from various sources, including routine cleaning and building maintenance.
Automotive Fluid Leaks
Leaks from delivery trucks of fuels, oils, and other automotive fluids on the property can leach into the ground or discharge into water systems by run-off or collection in stormwater. Run-off from paved surfaces, such as parking lots, can collect fuel, oil, and chemicals and discharge them into water systems.
Paints and Solvents
Tenants may use and stock materials that contain chemicals, such as paints, solvents, lawn care, and automotive products. Leaks or spills from improper handling or storage could result in environmental liability. Chemicals could also be abandoned by a tenant when they vacate.
Perchloroethylene
Shopping centers can have current or past dry-cleaning tenants who utilize chemicals such as perchloroethylene or “Perc ‘’ in their operations. Spills or leaks from equipment can migrate into soil and groundwater. Vapors from released chemicals can also intrude into buildings. Improper handling or disposal by the tenant, including the discharge of cleaning solvents and waste into a drain, can expose the property owner to environmental liability.
Pesticides
Leaks, spills, or over-application of pesticides, insecticides, and rodenticides can contaminate soil, surface water, or groundwater, impacting adjacent properties and stormwater run-off. Inadequate ventilation or insufficient time before building re-occupation can affect third parties with respiratory issues or systemic toxicity.
Grease Traps
Restaurants and fast food establishments may have grease traps onsite. Leaks or spills from poor maintenance or during loading/unloading of grease wastes can contaminate soil or groundwater, clog drains or sewer lines, cause natural resource damage, and expose bacteria and infectious diseases to third parties.
Refrigerants
Restaurant and grocery store tenants use refrigeration systems, chillers, and walk-in coolers. These units may use chemicals, such as ammonia, hydrofluorocarbons (HFCs), or chlorofluorocarbons (CFCs), and their release can cause serious health hazards to third parties, including respiratory illness and even death.
Storage Tanks
Above and underground storage tanks often store potential pollutants such as fuels, heating oil, and lubricants. Tenants may also install tanks for storage, including gas stations, auto repair shops, and dry cleaners. Leaks or spills can contaminate soil and groundwater and pollute stormwater run-off.
Diesel Generators
Centers may require the use of energy backup systems. Using diesel generators can create diesel soot or particulates, an airborne carcinogen, and require storage tanks for fuel that can leak. Loose components, deteriorated gaskets, or cracks or holes in fuel lines can cause leaks.
Illicit Abandonment
Illicit abandonment is the illegal dumping of pollutants on a property. 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.
Waste Management
Collected waste must be properly characterized and segregated based on its type and associated hazards. Wastes collected can contain hazardous materials or materials that require special disposal procedures, and improperly segregated and disposed of wastes can result in regulatory fines or lead to cleanup and environmental tort liability. Materials include fluorescent light fixture ballasts, fluorescent light tubes and bulbs, paints, paint and floor strippers, solvent-soaked rags, used oil, and construction debris containing asbestos, lead, or PCBs.
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
Natural resource damage