Contractors

Steel Erection

Steel erection companies construct, alter, or repair steel structures, including framing for buildings, metal decking, bridges, signs, and other steel structures. Steel erection companies may face various environmental risks. They may bring chemicals, fuels, or maintenance fluids onto jobsites, and spills or releases during storage, loading, or unloading, or use can result in environmental cleanup liability. Welding fumes and emissions from equipment operations could cause harm to third parties and result in bodily injury claims. Stormwater could come in contact with equipment, storage tanks, or chemicals used or stored by the steel erection company and carry pollutants to drywells, storm drains, or surface waters.

Download PDF

Environmental Exposures May Include

Mobile Refueling & Equipment Fluid Spills
Welding Fumes & Airborne Particulate Intrusion
Hot Work Fires & Firewater Run-off
Jobsite Soil Disturbance & Sediment Erosion
Cutting Fluids & Chemical Handling Releases
Compressed Gas Cylinder & Asphyxiation Hazards
Equipment Washdown & Wastewater Management
Structural Frame Renovation & Lead/ACM Disturbance
Chemical & Waste Transportation Liability
Fabrication Facility Chemical & Fuel Storage

Mobile Refueling & Equipment Fluid Spills

Equipment used at jobsites, such as cranes, industrial lifts, forklifts, etc., uses fuels and hydraulic fluids. These may be stored in mobile refueling tanks and containers at the jobsite. Releases of fuels, oils, and fluids from equipment or storage due to accidental spills or leaks or from vandalism can discharge pollutants into soil, groundwater, storm drains, drywells, etc., resulting in claims for cleanup or natural resource damage.

Welding Fumes & Airborne Particulate Intrusion

Welding, brazing, and cutting performed by ironworkers can generate fumes and vapors that contain metals, carbon dioxide, carbon monoxide, ozone, fluorides, and other chemical components that can adversely impact health. Dust can be generated from grinding activities. If the area where these operations are performed is not properly vented, or fumes or dust are vented to areas where they are drawn into neighboring HVAC systems, third parties could be exposed to the fumes or dust, resulting in bodily injury claims.

Hot Work Fires & Firewater Run-off

Ironworkers often perform hot work, which includes welding, burning, cutting, and other operations using fire or spark-producing tools. Hot work presents an increased risk of fire and explosion hazards at a jobsite. A fire could emit toxic fumes and smoke from the materials stored at the site or due to a mix of materials that occurs due to the fire. Firefighting water or foam could create contaminated run-off that spreads to nearby storm drains or properties, resulting in environmental cleanup and tort liability.

Jobsite Soil Disturbance & Sediment Erosion

Silt and sediment are fine-grained soil particles readily carried in surface water and may migrate directly or indirectly to surface waters. Equipment such as forklifts and industrial lifts moving around a jobsite can disturb soils, resulting in erosion and run-off of silt and sediment, impairing the functionality of stormwater drainage systems and catch basins, impairing water quality, or causing natural resource damage to surface water bodies.

Cutting Fluids & Chemical Handling Releases

A steel erection company may bring solvents, cutting fluids, or other chemicals to a jobsite. Spills or leaks of these chemicals during storage, use, or loading/unloading could discharge pollutants into soil, groundwater, storm drains, drywells, etc., resulting in claims for cleanup or natural resource damage.

Compressed Gas Cylinder & Asphyxiation Hazards

Compressed gases used for welding, cutting, or brazing can be asphyxiants if released in a poorly ventilated or confined space, or they can react with other gases or materials. Also, damaged cylinders or valves can cause the gas to escape rapidly, causing the cylinder to spin wildly or shoot like a projectile. Releases of gas can cause bodily injury or property damage to third parties.

Equipment Washdown & Wastewater Management

Wastewater can be generated from cleaning equipment used at a jobsite. These wastewaters need to be appropriately handled because they could contain particulates and residual oils and fluids. Mishandling can result in regulatory violations or cleanup claims.

Structural Frame Renovation & Lead/ACM Disturbance

Repairs or renovations to an existing steel frame for a building or structure could disturb hazardous building materials such as asbestos-containing materials or lead-based paint. Disturbance of these contaminants can result in cleanup or bodily injury claims against the contractor.

Chemical & Waste Transportation Liability

Accidental releases during the transportation of chemicals or wastes from a steel erection project due to improper cargo securement, a loose valve, or vehicle upsets or overturns can result in environmental liability.

Fabrication Facility Chemical & Fuel Storage

Storage at owned/leased facilities of chemicals, fuels, compressed gases, etc., for fabrication operations, for equipment, or use at jobsites carries environmental exposures. Spills, leaks, improper storage containment, and exposure to stormwater can release pollutants to surface water, soil, or groundwater, resulting in cleanup, natural resource damage, or third-party claims.

Contractors Pollution Liability Can Provide Coverage For

Contracting operations completed “by or on behalf of” the insured

Contracting operations performed at a jobsite

Third-party claims for bodily injury and property damage

Third-party claims for cleanup

Defense of third-party claims

First-party emergency response cost

Mold, legionella, bacteria, fungi, lead, asbestos, and more

Sudden and accidental coverage for owned/leased locations

First and third-party transportation pollution liability

Non-owned disposal site liability

Loading and unloading

Silt and sedimentation

Natural resource damage

Claims Scenarios & Examples

During work on a steel erection project, the contractor was using an aerial lift. The operator backed the lift up and hit a mobile refueling tank that was present on-site, releasing 300 gallons of diesel fuel. The fuel flowed to a storm drain and was discharged to a nearby creek. The contractor was responsible for emergency response, natural resource damages, and cleanup costs related to the accident.
A compressed gas cylinder containing an argon oxygen mix was being used for welding at a construction site. The steel erection company had not properly secured the cylinder, which fell over. The valve on the cylinder broke, releasing the argon mixture at high pressure. A worker for another contractor on the jobsite was standing near the cylinder at the time of the release. The argon came into contact with the worker’s skin, causing frostbite. The worker was taken to a nearby hospital for treatment. He sued the steel erection company for bodily injury.
A steel erection contractor was welding a beam at a construction site that was positioned between buildings in the downtown area. The welding fumes were drawn into the ventilation system of the adjacent building, sickening several workers. The workers sued the contractor for third-party bodily injury.
A steel erection contractor used a crane on a jobsite to lift a steel beam. The beam fell from the crane onto a diesel tanker truck that was present on-site to fuel other construction equipment. The cost to contain and clean up the resulting diesel spill exceeded $55,000.
A crane being used by a steel erection contractor fell over in a storm, rupturing the crane’s hydraulic hoses and spilling fluid onto the soil. The erection contractor was liable for the cleanup.

Final Consideration

As a contractor you can be faced with the cost to defend yourself against allegations or legal action from pollution related events, regardless if you are at 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

Download PDF