ERP - Environmental Risk Professionals

Truck Fluid Leaks

Heavy-duty trucks can leak automotive fluids on the property during loading and unloading at warehouse facilities. Pollutants such as heavy metals, solvents, fuels, oil, and grease can contaminate soil and groundwater or be collected by rainfall, creating contaminated stormwater run-off that can pollute storm drains and adjacent sites.

Chemical Storage

Warehouses may store raw materials or finished goods that can be hazardous. Improper storage, containment breaches or leaks, or spills during loading and unloading can release these materials. Incompatible chemicals can react violently or produce toxic byproducts/gases and should not be stored together or mixed.

Flammables

Some products are flammable and may result in a fire that spreads and releases other contained materials. A hostile fire at the facility could emit toxic fumes and smoke from the materials stored at the facility or due to a mix of materials resulting from the fire. Firefighting solutions such as water or foam could create contaminated run-off that spreads to nearby storm drains or properties, resulting in environmental cleanup and tort liability.

Storage Tanks

Emergency generators may be diesel-powered and require fuel storage in aboveground or underground storage tanks. Leaks of fuel, exhaust fumes, tank/piping deterioration, and inadequate or no secondary containment can result in a release that contaminates soil and water systems or can enter the facility.

Mold

Mold could develop from moisture intrusion due to storm flooding or leaking water pipes, sprinklers, and HVAC systems. Many warehouse buildings are flat-roofed, where pooled water can be absorbed by the roofing material and seep into sub-roof areas. Mold can also develop within HVAC systems (air handling units, coils, and ductwork) or from improper building ventilation or humidity management of climate-controlled storage.

Hazardous Waste Management

Warehouses may have hazardous wastes requiring special disposal procedures, such as used oil and oil filters, lead-acid batteries, pesticides, and mercury equipment (thermostats). The waste generator is responsible for determining whether it is hazardous and following proper labeling and disposal procedures. Improper disposal could lead to environmental liability or legal consequences for violating requirements.

Wastewater Management

Washing equipment, maintenance, storage, and repair areas could discharge pollutants into stormwater drains. Wastewater needs to be properly contained, collected, and disposed of.

Neighboring Contaminant Off-Site Migration

Many warehouses are located in commercial and industrial complexes. Contaminants from neighboring facilities could migrate onto the warehouse area. If the neighboring business owner is not properly insured or goes bankrupt, the cleanup cost for the contamination could fall on the warehouse owner for their property.

Illicit Abandonment

Illicit abandonment is the illegal dumping of pollutants on a property. 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.

Stormwater Run-off

Vehicles and powered equipment, such as forklift trucks and cranes, may be used at a facility and involve the storage of fuels, oils, hydraulic fluids, and other automotive fluids. Leaks from vehicles or storage containers can contaminate soil and groundwater or collect in stormwater run-off. Internal combustion engines are powered by either diesel or propane, which can emit carbon monoxide, which can be especially hazardous to third parties in controlled atmosphere rooms without strong ventilation and enclosed areas, trailers, or containers.

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 bodily injury and property damage

Third-party claims for cleanup

Both sudden and gradual pollution conditions

Aboveground and underground storage tanks

Non-owned disposal sites

Natural resource damage

Emergency response costs

Mold, bacteria, viruses, legionella, and more

Business interruption resulting from pollution conditions

First and third-party transportation pollution liability

Civil fines and penalties

Loading and unloading

Defense of third-party claims

Illicit abandonment

Crisis management

Claims Scenarios & Examples

A fire broke out at a warehouse facility that stored various hazardous materials. Emergency responders discovered heavy smoke from the fire settling over a nearby residential community. Vapors from the fire presented a health hazard, and residents were advised to stay in their homes. Hazmat responders set up containment to capture run-off from the fire suppression water and to conduct air monitoring. After the fire was put out, testing found contamination in the soil beneath and around the warehouse from the contaminated fire suppression water. Additional investigation and subsequent cleanup activities were required. Several claims alleging bodily injury due to inhalation of toxic fumes from the fire were also filed by nearby residents. The warehouse owner incurred additional expenses associated with the defense and settlement. Total costs were about $545,000.

A forklift operator accidentally hit a drum of toluene stored at a warehouse, causing the contents to leak, which migrated into a floor drain leading to a sanitary sewer and the nearby municipal treatment plant. As a result, the treatment plant’s operations were impacted, and they filed a claim against the warehouse for the cleanup.

A warehouse used for producing and storing pool and spa water-treatment chemicals had a chemical reaction occur when about a dozen pallets of dry chemicals were exposed to water. A vapor cloud formed, causing the nearby highway and surrounding area to shut down, and residents were advised to shelter in place.

A large storage tank inside a warehouse was found to be leaking a chemical identified as Divinylbenzene. First responders and hazmat crews responded and investigated the facility. They were concerned that the leak could catch fire and explode, so they closed down and evacuated the entire block. The leak took three days to secure.

When a petroleum sheen was noticed on a river, the river was closed to boat traffic, and the cause was traced back to a leaking fuel tank in the basement of a nearby warehouse. A fitting on the tank had failed, allowing the sludge to migrate into a storm sewer and ultimately into the river. Firefighters and the county hazmat crew worked to plug the leaking tank and prevent more fuel from seeping into the storm drain. Professional contractors were also hired to clean up the petroleum in the river.

While working in a warehouse, a forklift hit and punctured a drum containing a flammable chemical, causing a leak. Fifty workers had to evacuate the property, and the fire department and hazmat crews responded to the scene. The warehouse sprinklers had turned on in the event, and the water from the sprinklers became contaminated when contacting the chemical. The water run-off seeped into the storm drain and nearby river.

A large fire at a warehouse ignited explosions that damaged neighboring homes and cars and filled the air with fumes. Pesticides and a petroleum additive in diesel contaminated the fire suppression run-off water and got into the drainage ditches and a creek behind the warehouse. The additive, which was non-water soluble, was vacuumed out of the creek by environmental crews, while the pesticide, which was water soluble, was much more difficult to remove. Nearby residents were told to avoid water run-off in the area and shut off their A/C units.

A warehouse storing 90 tons of batteries, including lithium, nickel cadmium, and lead-acid batteries, caught fire. The fire resulted in the evacuation of 4,000 residents. Fire crews could not extinguish the fire using water and had to use other tactics. The warehouse was sued for releasing harmful pollutants and jeopardizing the public’s health and the environment’s welfare.

Property Types

Warehouses

Environmental Exposures May Include