Transit Spills and Releases
Accidents involving vehicles, such as rollovers or upsets on the highway or roadway, could cause the release of automotive fluids, including gasoline or diesel fuel, motor oil, hydraulic fluid, or antifreeze, which may spill onto the side of the roadway and contaminate soil and groundwater. In addition, the release may travel to nearby surface waters, such as lakes, rivers, streams, or creeks, and harm aquatic life. Cleanup, third-party claims, or natural resource damage claims could result.
Aboveground Storage Tanks (ASTs)
On-site storage of fuel, oil, lubricants/grease, and automotive fluids in aboveground storage tanks (ASTs) and drums can leak during containment or be spilled while loading, resulting in environmental liability.
Illicit Abandonment
Illicit abandonment is the illegal dumping of pollutants at a property, which could occur at a vehicle impound and storage yard. If the originator of the waste cannot be found, the property owner would incur the cost of characterizing it. If the waste is hazardous, they will incur the costs of removal, cleanup, and disposal, while retaining cradle-to-grave liability.
Non-Owned Disposal Site (NODS)
When a towing contractor transfers recovered road debris, contaminated soil, or junked vehicles to a third-party scrap yard or landfill, they retain lifelong "cradle-to-grave" liability under federal Superfund laws (CERCLA). If that third-party disposal site is later shut down or found to be leaking, a towing contractor can become a Potentially Responsible Party (PRP) and be liable for cleanup costs for the environmental cleanup of a non-owned disposal (NOD) facility where it sent waste.
Bloodborne Pathogens
Towing contractors routinely impound and store vehicles involved in fatal accidents, medical emergencies, or criminal activity. These vehicles frequently contain bloodborne pathogens (such as Hepatitis B, Hepatitis C, and HIV) or other bodily fluids. Improper handling, transporting, or disposal of biohazards can expose third parties to infectious agents or injury, resulting in third-party bodily injury claims.
Loading and Unloading
An accidental release of automobile fluids, hazardous cargo, or bodily fluids can occur from a mechanical failure or improper rigging during winching operations, casualty recovery, or flatbed loading/unloading. This could contaminate soil or nearby bodies of water, harming aquatic life and resulting in extensive remediation costs.
Waste Characterization and Disposal
Towing contractors frequently clear accident scenes without a precise analysis of the spilled fluids. Handling unknown releases of automobile fluids, bodily fluids, or vehicle cargo could result in improper characterization and disposal of regulated hazardous substances.
Mold and Fungi
Vehicles with broken windows or structural damage are often wrapped in plastic or tarped and left in a holding lot for months during insurance disputes. Inadequate sealing, combined with water intrusion and high humidity, can lead to mold growth. Airborne spores can expose third parties, such as adjusters or vehicle owners, to respiratory illness and result in third-party bodily injury 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
Third-party claims for property damage
First-party emergency response costs following containment breaches or chemical spills
Mold, legionella, bacteria, viral pathogens, fungi, lead, and asbestos disturbances
Sudden and gradual pollution conditions arising from jobsite operations
First and third-party transportation pollution liability (waste transit and equipment hauling)
Loading and unloading
Non-owned disposal site (NODS) liability for waste payloads transferred to commercial landfills
Defense of third-party claims and regulatory enforcement actions
Claims Scenarios & Examples
