ERP - Environmental Risk Professionals

Excavation Dust & Particulate Matter Emissions

Excavation and trenching activities create dust. Dust consists of tiny particles (particulate matter) that can cause respiratory issues if inhaled. Contaminated dust can cause illness to third parties nearby. Off-site migration can lead to third-party bodily injury and property damage claims.

Contaminated Soil Disposal & Manifest Liability

Improper waste disposal can lead to cleanup costs and environmental tort liability. Contaminated soil resulting from a fuel spill may be disposed of improperly. Investigations for improper disposal at a disposal facility can result in potential liability for all parties that manifested waste to the facility, including contractors.

Waste Transport & Mobile Transit Liability

Transporting waste materials from a construction site by the contractor or third-party carrier to disposal sites or recycling centers can lead to environmental liability while on the road and during loading and unloading operations. Spills or leaks resulting from accidents or improper cargo securement can lead to third-party and cleanup liability.

Subcontractor Management & Joint Liability

Contractors may hire subcontractors for whom they are responsible. Subcontractors’ actions can become the prime contractor’s liability. Since pollution laws are joint and several, prime contractors can be held liable for pollutants caused by a subcontractor.

Storage Tank Fuel Removal & Leak Hazards

Improper fuel removal from storage tanks can lead to significant leaks or spills, posing serious environmental and health risks. When fuel is not adequately drained, or if the tank is damaged during removal, hazardous substances can seep into the surrounding soil and groundwater, potentially compromising local water supplies, harming aquatic ecosystems, and creating long-term environmental liabilities.

Erosion Control & Sediment Run-off

Improper erosion controls for work involving the disturbance, re-location, or stockpiling of soils, such as excavation, trenching, or grading, can lead to run-off of silt and sediments, which are fine-grained soil particulates. Rain, accidental pipe breaks, or excessive watering from dust suppression can carry these particulates off-site and impair the proper functioning of stormwater drainage systems, cause ecological damage to streams and rivers, or result in adjacent property damage.

Subsurface Work & Underground Utility Strikes

Subsurface work can impact underground utilities, including gas lines, sewage pipes, existing storage tanks, or unknown hazards such as abandoned storage and septic tanks. Accidental puncture and release of fuel oil, chemicals, toxic gases, or sewage can contaminate soil and groundwater and release hazardous air emissions, resulting in cleanup costs and third-party bodily injury and property damage 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

First and third-party transportation pollution liability

Loading and unloading

Misdelivery of liquid products

Non-owned disposal sites

Mold, legionella, bacteria, and fungi

Lead and asbestos

Sudden and accidental coverage for owned/leased locations

First-party emergency response costs

Natural resource damage

Defense of third-party claims

Claims Scenarios & Examples

While removing an underground storage tank in California, a contractor failed to adequately drain the remaining fuel from the tank, resulting in approximately 1,500 gallons of gasoline leaking into the surrounding soil. The spill was discovered when nearby residents reported a strong gasoline odor, prompting an investigation. Environmental agencies found that the contaminated area extended beyond the gas station property, impacting local groundwater supplies and requiring extensive cleanup efforts. The contractor faced regulatory penalties and was held liable for the cleanup costs, which included soil excavation, groundwater testing, and monitoring to ensure the contamination was fully addressed.

A Massachusetts contractor was cited for improper disposal at a non-owned disposal site during a UST removal. After removing the USTs, the contractor improperly disposed of the tanks and contaminated soil at an unauthorized landfill site. Leaking fuel and hazardous materials from the tanks posed risks to surrounding soil and groundwater, raising alarms among local environmental agencies. The Massachusetts Department of Environmental Protection (MassDEP) took immediate action, issuing fines and ordering the contractor to remediate the landfill site. The contractor faced significant penalties for violating state hazardous waste regulations. The incident resulted in severe reputational damage, leading to the loss of future contracts and increased scrutiny from regulatory bodies.

A contractor excavating a tank pit to install an underground storage tank system inadvertently struck a sewer line, releasing wastewater into the subsurface. The contractor was required to excavate and dispose of the contaminated soil and repair the sewer line at their own cost. In addition, the project was delayed two days due to the contractor’s error.

During the removal of residual fuel from an underground storage tank (UST) system decommissioning, the contractor did not adequately secure the hose to the tanker truck, releasing approximately 50 gallons of fuel. The fuel migrated to a drainage ditch, which flowed to a stormwater retention area and contaminated the soil. The contractor had to excavate the contaminated soil and transport it off-site for disposal at their own cost.

A family-operated gas station hired a UST contractor to remove two underground storage tanks and the associated contaminated soil. During the removal, a backhoe hit a natural gas pipeline, resulting in an explosion. The owner’s building was destroyed in the explosion. Third parties filed bodily injury claims against the contractor and the owner exceeding $2.5 million.

Contractors

Storage Tank Installation & Removal

Environmental Exposures May Include