Failure to properly locate subsurface utilities, such as gas lines, water, and sewage pipes, or unknown hazards, such as abandoned storage or septic tanks, could result in damage and a release of fuel oil, chemicals, toxic gases, or sewage that harm the environment or impact third parties.
Excavated soils could have known or unknown pre-existing contamination. Contaminated soil could be collected and spread to clean areas of a site. Stormwater coming in contact with contaminated soil stockpiles that are not properly tarped or contained can spread contaminants. Contaminated dust can also generate hazardous air emissions that impact third parties and even enter building HVAC systems.
Backfilling could damage underground pipes and result in perforations that can release contaminants. When refilling a utility trench, rocks in the backfill or pipe placement on jagged edges can damage the line.
Excavation, directional boring, and other subsurface intrusion can disturb the soil and possibly penetrate an aquifer. Subsurface work can create pathways for contaminants in the soil to migrate off-site or contaminate groundwater or surface water.
Silt and sediment are fine-grained soil particles that can migrate in run-off due to a rain event, accidental water pipe break, or excessive watering for dust suppression. During construction activities for utility trenches, bare ground, and exposed earth is vulnerable to erosion by wind and water. Inadequate erosion controls can lead to surface run-off of these soil particles, impairing the proper functioning of stormwater drainage systems, causing ecological damage to streams and rivers, and causing adjacent property damage. Control of silts/sediments is required under the Clean Water Act. Contractors may face regulatory action such as cleanup orders, fines, and penalties from federal, state, or local regulators.
Dewatering could spread pollutants when water is discharged or pumped to off-site sources like lakes and wetlands or into storm sewer inlets or surface waters. Untreated water from construction dewatering operations may contain sediment or other pollutants found on-site from current or past land use.
Leaks, spills, misuse, or over-application of herbicides and pesticides for vegetation management can contaminate soil and water sources. Applications made before heavy rains or on saturated soils can also contribute to contaminated stormwater run-off.
Heavy equipment, fuel tanks, and powered equipment may be brought to and stay on a jobsite. The release of fuels, oils, and fluids from accidental spills, leaks, or vandalism can discharge pollutants into the environment and require cleanup. Additional exposure can occur during equipment storage or maintenance at the contractor’s facility.
Equipment washout and decontamination water can contain toxic materials and be caustic and corrosive. Improper washouts from cleaning mobile equipment, pumps, hoses, and drill rods can leach into soil and groundwater or migrate off-site and into storm drains that discharge into surface waters and harm natural resources and aquatic life.
A release of chemicals, contaminated soil, fuel, or fluids could occur during transportation to and from a jobsite or during loading and unloading. Releases of contaminated wastes and wastewater during transport to a disposal facility can also create environmental exposure.
Installation and repair work can inadvertently disturb existing pollutants, such as asbestos, lead, mercury, and PCBs, releasing inhalable particulates into the air that can harm nearby third parties. Leaks can cause contamination, resulting in environmental cleanup and tort liability.
Wastes collected from a jobsite, such as soil, wastewater, sewer debris, sludge, and old discarded materials, may contain hazardous materials, such as polychlorinated biphenyls (PCBs), which can be found in transformers, cables, and fluorescent lamp ballasts; mercury, which can be found in gas meters and thermostats; and wood treatment preservatives found on utility poles. These wastes may require special disposal or recycling procedures. Improper disposal or misdelivery of unidentified contaminated material can result in contamination at a landfill or non-owned disposal facility and claims for environmental cleanup and tort liability.
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
Natural resource damage
Sudden and accidental coverage for owned/leased location
First and third-party transportation pollution liability
Loading and unloading
First-party emergency response costs
Mold, legionella, bacteria, and fungi
Lead and asbestos
Silt and sedimentation
Non-owned disposal sites
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.