Property Types

Vacant Land

Vacant land presents many potential environmental hazards and pollution risks for the property owner. Third parties can target these locations to illegally dispose of hazardous wastes, known as illicit abandonment, and the owner may become responsible for removing or cleaning up any contamination from the site. Adjacent properties can pose risks to vacant land if contaminants in soil and groundwater on the neighboring property migrate or if stormwater run-off contaminates the vacant property. The migration of contaminants onto the property could result in cleanup liability and diminish the value of the vacant land. Unknown pollutants may also be present on the vacant land, which may migrate off-site, contaminating neighboring properties, for which the owner may be held responsible. Vacant land in urban communities is often contaminated with hazardous wastes such as lead, cadmium, arsenic, and asbestos, resulting in unsafe conditions for nearby residents.

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Environmental Exposures May Include

Existing Contamination
Unknown Subsurface Structures
Pesticides
Adjacent Property Pollution Migration
Stormwater Run-off
Superfund Proximity and Landfill Discovery Risks
Fugitive Dust
Illicit Abandonment

Existing Contamination

Existing soil or groundwater contamination may be on, under, or adjacent to a property, resulting in potential environmental liability. Without knowledge of existing contamination at the site, the property owner may be held responsible for addressing the property’s cleanup or remediation.

Unknown Subsurface Structures

Previously unknown subsurface structures, including underground storage tanks (USTs), may be discovered on the vacant property by the property owner. In addition, unidentified aboveground storage tanks (ASTs) may have been historically operated on the site. These structures are vulnerable to releases during the loading and loading of petroleum products and may have leaked contaminated soil and groundwater at the site. Releases from ASTs and USTs can migrate off-site and enter dry wells and storm drains, damaging sewer systems and contaminating soils and groundwater on neighboring properties.

Pesticides

Vacant properties could have previously been used as farmland, orchards, or vineyards and may have been exposed to pesticides. The term pesticide covers many compounds, including insecticides, rodenticides, molluscicides, nematicides, plant growth regulators, and others. Applied pesticides can leach through soil and into groundwater or become mobile through run-off drift and enter surface water or adjacent properties. Pesticide contamination can impact the drinking water supply and cause natural resource damage to non-target organisms, ranging from beneficial soil microorganisms to killing bees, wildlife, and aquatic systems.

Adjacent Property Pollution Migration

Soil and groundwater contamination from adjacent properties could migrate onto vacant land, creating an environmental liability. The liability burden could be placed on the vacant land’s owner if the contamination’s originator becomes insolvent.

Stormwater Run-off

Stormwater run-off from adjacent properties could carry pollutants onto vacant land, creating environmental liability. The liability burden could be placed on the owner of the vacant land if the originator of the contamination becomes insolvent or the source of the contamination cannot be confirmed.

Superfund Proximity and Landfill Discovery Risks

Neighboring properties with known contamination and ongoing cleanup efforts can affect the value of the vacant land. Vacant land near a Superfund site can be even less attractive to a prospective purchaser and result in a claim for diminution in value. The property owner could discover a former landfill on the vacant property that may have been abandoned and not closed properly. The landfill could contain hazardous waste or hazardous materials that have caused contamination of the soil on the property and may have impacted groundwater. Contaminants have the potential to migrate off-site and contaminate neighboring properties, causing third-party property damage and third-party bodily injury claims against the owner.

Fugitive Dust

Vacant land may also be barren and free of vegetation which can cause the release of fugitive dust during windy conditions or storms. Fugitive dust is particulate matter that becomes airborne and can adversely affect human health or the environment. These particles cause respiratory and breathing problems such as coughing, wheezing, shortness of breath, aggravated asthma, and lung damage.

Illicit Abandonment

Illicit abandonment is the illegal dumping of pollutants on a property by a third party. It can become the property owner’s burden for cleanup and third-party bodily injury or property damage if law enforcement cannot locate the originator of the waste.

Environmental Pollution Liability Can Provide Coverage For

On-site cleanup of new and pre-existing pollution conditions

Off-site cleanup of new and pre-existing pollution conditions

Third-party claims for cleanup costs

Third-party claims for bodily injury

Third-party claims for property damage

Non-owned disposal sites

First and third-party claims for transportation pollution liability

Loading and unloading

Civil fines and punitive damages, where allowed by state law

Coverage for the presence of lead and asbestos

Underground and aboveground storage tanks

Diminution of Value

Defense costs for third-party claims

Illicit abandonment

Natural resource damage

Claims Scenarios & Examples

Contaminated soil and groundwater were discovered on a previously undeveloped property during excavation and dewatering. It was determined that the contamination originated and migrated from a nearby manufacturing facility several years before the development project. State regulatory authorities required the developer to collect, test, and treat groundwater pumped out during excavation. Due to these discoveries, there were construction delays and additional expenses totaling over $1 million for the developer.
A marina decided to build a new boat storage facility on vacant land they owned. The owner visited the site at the beginning of construction and found piles of unknown waste illegally left on the property. Testing was done on the piles, and the waste was hazardous. The marina owners faced waste disposal costs that exceeded $650,000.
A developer purchased a riverfront industrial complex with plans to build retail, commercial, and residential buildings. The property had been vacant before the purchase. During excavation, multiple underground storage tanks were found that hadn’t been discovered in prior environmental investigations. The property’s soil and groundwater were also contaminated. Cleanup costs were over $1 million.
A landowner hired an environmental contractor to remove abandoned waste on vacant land. The abandoned waste was consolidated and packaged to prepare for off-site transportation and disposal; however, incompatible wastes were mixed, causing an explosion and a toxic vapor cloud. The explosion and vapor cloud contaminated the site and residential properties nearby. Lawsuits were filed for bodily injury, physical damage, and cleanup costs.

Final Consideration

Your business can be faced with the cost to defend itself against allegations or legal action from pollution related events, regardless if you are 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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