Contractors

Tank Cleaning

The environmental risk for tank cleaning contractors can be significant. Work can include handling, removing, transporting, and disposing of tank contents that may be hazardous or may have flammable and gaseous residues, such as petroleum, chemicals, and acids. Cleaning processes that involve hydro-cleaning can generate contaminated wastewater that must be properly contained, transported, and disposed of. Releasing a hazardous material or wastewater can contaminate soil and water systems, result in hazardous air emissions, and lead to cleanup and third-party liability. Chemicals and solvents found in cleaning products and disinfectants can also create liability from a spill or leak if used or mixed improperly or from improper disposal.

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Environmental Exposures May Include

Tank Sludge & Residual Hazardous Vapor Hazards
Hydro-Cleaning Wastewater & Contaminant Migration
Regulated Effluent & POTW Discharge Compliance
High-Pressure Spray Drift & Atomized Chemical Hazards
Cleaning Solvents & Acidic Chemical Handling
Vacuum Truck Operations & Off-Site Transport Spills
Incompatible Product Cross-Contamination
Hazardous Waste Manifesting & RCRA Compliance

Tank Sludge & Residual Hazardous Vapor Hazards

Tank cleaning can include flushing and removing contents that may contain hazardous materials, residues, or vapors, which can include petroleum products, chemicals, pesticides, benzene, polycyclic aromatic hydrocarbons, vinyl chloride, hydrogen sulfide, sludge, microbial matter, sediments, and naturally occurring radioactive material. Tank draining before cleaning by the tank owner could still leave large volumes of product on the tank floor below the suction line. Improper procedures for handling, removing, cleaning, and containing products inside tanks could release hazardous materials or toxic vapors that can contaminate soil, water systems, and air emissions.

Hydro-Cleaning Wastewater & Contaminant Migration

Hydro-cleaning involves pressure-washing and hydro-blast application. Wastewater from these operations creates migratory pathways for contamination to flow on/off-site if containment is not in place or the wastewater flows beyond recapture points. The primary pollutant output of tank cleaning operations is wastewater contaminated with tank residues (e.g., petroleum products, coal, chemicals, compressed gases, fertilizers, pesticides, food products, paints, inks, glues, and soaps) and cleaning solutions.

Regulated Effluent & POTW Discharge Compliance

State and Federal regulations monitor the discharge of pollutants to surface waters or publicly owned treatment works. The wastewater flows covered by the rule include all wash waters that have come into direct contact with the tank or container interior, including pre-rinse, chemical, and final rinse solutions. Additionally, the rule covers wastewater generated from washing vehicle exteriors, equipment, floor washings, and Transportation Equipment Cleaning (TEC) contaminated wastewater at those facilities subject to the TEC guidelines and standards.

High-Pressure Spray Drift & Atomized Chemical Hazards

Atomized water drift is prevalent in these operations. The spray may drift beyond the cleaned area and contain contaminants such as solvents, toxins, chemicals, and petroleum. Human health impacts include inhaling vapors, neurological damage, and eye and skin contact. Spray drift can also damage soil, groundwater, and natural resources.

Cleaning Solvents & Acidic Chemical Handling

Industrial cleaners, solvents, and scalers used for tank cleaning can pose hazards at the jobsite and during storage at the insured’s facility. Cleaners or scale removal chemicals contain one or more acids, such as sulfuric, hydrofluoric, phosphoric, or hydrochloric. Most solvents pose varying toxicity and may contain benzene, petroleum derivatives, perchlorate, tetrachloroethylene, heavy metals, degreasers, and disinfectants. Improper use and mixing of these cleaners could result in a violent reaction, corrosive damage, or release of toxic vapors. Storage container breaches, leaks, and spills caused during transportation to and from jobsites and loading and unloading could contaminate soil and groundwater or run-off into sewer lines or storm drains.

Vacuum Truck Operations & Off-Site Transport Spills

Vacuum trucks used to pump product, sludge, and rinse water out of tanks, or respond to spills and cleanup, may transport wastes off-site for disposal or recycling. Accidents, spills, or leaks during transportation and loading and unloading of any hazardous or contaminated materials could lead to cleanup and third-party liability. Improper disposal of materials collected by the vacuum truck could also result in environmental liability.

Incompatible Product Cross-Contamination

Cross-contamination can occur from residual pollutants left on surfaces or spreading contamination to previously unaffected areas, which can be problematic when cleaning tanks load a different and incompatible product. Improper cleaning procedures may also leave an unacceptable residue on cleaners and degreasers.

Hazardous Waste Manifesting & RCRA Compliance

Improper manifesting of contaminants, including hazardous materials, cleaning fluids, and wastewater, may result in disposal liability. While the generator is responsible for their waste from “cradle to grave,” a contractor may also be liable for improper manifesting and disposal in certain situations. Contractors are also responsible for determining if their spent solvents are subject to the Resource Conservation and Recovery Act (RCRA) hazardous waste regulations. Improper disposal could lead to cleanup and third-party liability, and there may be legal consequences for violating RCRA hazardous waste requirements.

Contractors Pollution Liability Can Provide Coverage For

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 costs

Sudden and accidental coverage for owned/leased locations

Civil fines and penalties

First and third-party transportation pollution liability

Loading and unloading

Non-owned disposal sites

Natural resource damage

Mold, legionella, bacteria, and fungi

Lead and asbestos

Claims Scenarios & Examples

A cleaning contractor was hired to clean a storage tank formerly used to store petroleum. Plastic sheeting and an associated dike were not properly placed to prevent run-off of contaminated rinse water, which allowed petroleum-impacted wash water to migrate onto a neighboring property. The adjacent owner sued for property damage and remediation costs related to the contaminated wash water.
A tank cleaning contractor was in the process of cleaning a tank when the pump was blocked. The contractor tried to unblock the pump by running it in reverse but released almost 85 gallons of radioactive waste. The contractor was fined by the EPA and received an order to clean up the spill.
A tank cleaning firm experienced a spill in their yard. The valve on a 275-gallon plastic container failed, and the container’s contents spilled onto the ground and pooled on the concrete. The liquid then flowed through a hole found at the base of the wall, migrating into an alley and along the curb of a nearby elementary school. The liquid also went into a storm drain. A nearby business reported the incident two days later, and the fire department responded. The District Court fined the tank cleaning firm for failing to report the spill and allowing the acid to enter the county’s water. The company also faced cleanup costs and paid the fire department costs for the response.

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

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