ERP - Environmental Risk Professionals

Legionella

Heating systems for pools, jacuzzis, spas, and various engineered or landscaped water features, may become the breeding ground for pathogenic bacteria species, like Legionella, which causes Pontiac fever and Legionnaires’ disease. Legionella thrives in warm, stagnant, pooled, or infrequently drained water (e.g., sumps, drain/condensation pans, humidifiers). Improper design, installation, maintenance, or testing of pool systems and other water features can expose third parties to these harmful bacteria, and claims for third-party bodily injury can result.

Mold & Algae Growth

Malfunctions, design errors, leaks, or water intrusion/condensation in enclosed areas may result in the growth and accumulation of mold or algae, and exposure to one or more of these toxic or allergenic organisms can result in cleanup and third-party claims.

Chemical Storage

Contractors handling and storing pool chemicals, including water disinfection and cleaner or scale removal chemicals, have environmental exposures. These chemicals pose risks during storage because they are highly concentrated and typically very reactive. A release can cause environmental damage to soil, groundwater, or surface water. Accidental reactions between pool chemicals and incompatible materials can cause fires or impair air quality for occupants, leading to cleanup and third-party claims.

Chemical Imbalance Risks

Chemical over-treatment of water can cause skin and mucous membrane burns, while under-treatment can cause rising levels of bacteria and pathogens, leading to bodily injury claims.

Loading and Unloading

Spills may occur while chemicals, waste, debris, or equipment are transported to or from the jobsite or disposal location and during loading/unloading. Spills during transportation accidents can contaminate surrounding soil or groundwater or enter storm drains that discharge into surface water.

Silica Dust

Concrete, cement, mortars, and numerous types of clay contain respirable crystalline silica. Releases may occur through transporting, handling, and mixing dry materials for new applications, repairing swimming pools, or mechanical alteration of cured material through grinding, cutting, or blasting. Dry emissions generate potential inhalation exposures because airborne particles stay suspended and concentrated without wind or dilution mechanisms or travel off-site with wind currents. Once inhaled, crystalline silica accumulates in the lungs and causes scarring and formation of nodules. People on a pool construction project or surrounding area can be exposed and claim bodily injury.

Silt and Sediment

Pool and water feature construction involves earthwork activities. Re-grading, fill placement, excavation, drilling, and other activities that disturb the surface cover and expose bare soil require silt and erosion control. Even running heavy equipment across a site is sufficient to remove the surface cover. Silt and sediments are the primary pollutants carried off-site by run-off into storm drainage systems and may migrate directly or indirectly to surface waters. Silt and sediment can cause catch basins to lose treatment efficiency, severely damage water quality, harm aquatic life, lead to algae blooms, and threaten drinking water sources.

Underground Utilities

Underground utilities (gas, water, and sewage lines) and unknown hazards beneath the surface (abandoned storage tanks and septic tanks) can be impacted during the construction of pools or other water features. An 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, bodily injury, and third-party property damage claims.

Pre-existing Contamination

During excavation and grading for pool and water feature construction, unknown pre-existing contaminated soil could be collected and spread. Contamination could be spread to clean areas of the site or create environmental liability in the transportation and disposal of the excavated material.

Design Specifications and Modifications

Companies may provide design services that can result in professional liability. Design work may include performing all of the design, some design relative to an aspect of a new or renovated pool, or professional opinions on design aspects. Contractors may also make modifications to design specifications at the jobsite. Design exposures can include the selection of equipment, type of disinfection, pool location, ventilation controls, drainage, pool security, improper or inadequate depth markers, etc.

Subcontractors

Proper selection and supervision of subcontractors can be a professional exposure liability for the contractor responsible. Contractors may have to defend themselves against claims relating to work for which they were responsible due to the hiring of the sub.

Sealants and Solvents

Tile, stone, and concrete may be coated or sealed with chemicals that contain toxic solvents and polymers. These chemicals can cause inhalation exposures, or spills can contaminate soil, groundwater, ground, and surface waters.

A Combined Pollution & Professional Liability Policy 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

Non-owned disposal sites

First and third-party transportation pollution liability

Loading and unloading

Sudden and accidental coverage for owned/leased locations

Mold, legionella, bacteria, and fungi

Lead, asbestos, silica

Silt and sedimentation

First-party emergency response costs

Defense of third-party claims

Natural resource damage

Mitigation/rectification

Excess/contingent design

Claims Scenarios & Examples

A hotel experienced an outbreak of Legionnaires’ disease, with over a dozen people who became sick and one who died. Traces of Legionella were found in the water sources of a hotel, including the pool and spa area. The swimming pool contractor was sued along with the hotel for negligent pool and spa maintenance.

One man died after staying at a hotel, and several others were injured due to carbon monoxide poisoning. It was discovered that the hotel’s pool heater was leaking carbon monoxide, and the ventilation pipe somehow became disconnected, causing the toxic gas to enter some rooms. The hotel, the pool contractor, and the contractor that had worked on the hotel heater were all sued.

A pool cleaning truck overturned on an interstate and spilled gallons of liquid chlorine and muriatic acid. The spill caused the two chemicals to mix and react, and a cloud of chlorine gas was released that traveled down the road with the wind. The freeway had to be shut down, and a hazmat unit had to respond for the cleanup.

While swimming at a local gym, a woman was exposed to hazardous chlorine gas. The woman was in the pool while the pool contractor was doing pool maintenance. The contractor’s employees were negligent with the pool chemicals and caused the pool pump to fail and release chemicals into the area. The woman experienced health issues, including reactive airway dysfunction syndrome, shortness of breath, wheezing, coughing, burning in her throat, difficulty speaking and swallowing, and difficulty going about her normal day-to-day life. It was also discovered that this was not the first time the pool had been maintained negligently. The woman was awarded over $91,000 for pain, suffering, disability, and loss of enjoyment of life.

A pool contractor was excavating the location of a new pool. Raw sewage was released into the soil and groundwater when they failed to identify a buried sewer pipe. The pool contractor was held liable for the cleanup.

A fresh batch of chlorine was delivered to a newly constructed town pool. The valve at the bottom of the tank was accidentally left open, and as a result, 800 gallons of chlorine leaked out and ended up in the nearby creek. The valve led to a drain connected to stormwater, which flowed into the creek. The spill wasn’t noticed for days and resulted in the death of many fish in the creek.

A pool contractor had recently finished installing a new pool for a school and was in the process of chlorinating the pool with the use of several chlorine cylinders. One of the cylinders was inadvertently knocked over, breaking its valve and releasing chlorine. A chlorine cloud formed, causing the evacuation of 200 people and sending 29 of them to the hospital with respiratory difficulties.

A newly designed and installed pool at a housing complex had an automatic chlorinator. The unit malfunctioned, resulting in the pool being over-chlorinated. Several children playing in the pool during the malfunction experienced chemical burns. The families sued the pool owner and the contractor who designed and installed the pool.

A homeowner sued a pool contractor for $1M, claiming breach of contract, failing to honor implied warranties, misrepresentation, and deceptive trade practices. The contractor installed a new pool, spa, and deck. Cracks formed in the pool and decking, and the pool began to lose significant volumes of water that leaked onto the driveway. The homeowners claim the issues are due to the contractor’s inadequate shell and drainage design.

A hotel hired a swimming pool contractor for the pool and spa area maintenance work. The contractor failed to isolate or disable the pool equipment’s chemical controller, resulting in a mix of chlorine and muriatic (hydrochloric) acid being negligently released into the system and hazardous gas also being released. As a result, 26 patrons were sent to the hospital. The hotel had to pay out bodily injury claims and worker compensation claims and spent another $44,000 in investigation expenses. The hotel also faced a $10,000 fine from OSHA. The hotel sued the pool contractor for reimbursement of the costs, claiming the contractors were responsible.

A pool worker was doing routine maintenance of an indoor pool at a school when two 15-gallon drums of hydrochloric acid spilled into the pool. The acid reacted with chlorine bleach, creating hazardous fumes that spread through the campus and beyond. As a result, almost 500 people were evacuated to escape the fumes. At least 35 adults and children were taken to area hospitals due to respiratory irritation.

Contractors

Swimming Pool

Environmental and Professional Exposures May Include