Contractors

Waterproofing

CPL/PL

Waterproofing contractors use various specialized techniques and materials, which are crucial in safeguarding structures from water damage. However, their operations inherently involve various environmental risks. If chemicals, sealants, and coatings are mishandled, waterproofing contractors pose the risk of chemical spills and releasing emissions. Moreover, their work may involve excavating or altering land surfaces, potentially disrupting natural habitats and ecosystems. Improper disposal of construction waste and wastewater generated during waterproofing activities further compounds environmental concerns, potentially leading to soil, water, and air pollution. Balancing the necessity of waterproofing with environmental responsibility presents a significant challenge for waterproofing contractors, requiring stringent adherence to best practices and regulatory standards to mitigate adverse environmental impacts.

Download PDF

Environmental and Professional Exposures May Include

Waterproofing Chemical Spills & Drainage Contamination
Legacy Asbestos & Lead-Based Paint Disturbance
Waterproofing Waste Segregation & Manifest Liability
Concrete Repair Defects & Structural Integrity
Chemical Leaks & Soil Contamination Hazards
Respirable Crystalline Silica & Concrete Dust Exposure
Preconstruction Services & Design Modification E&O
Perimeter Excavation & Unknown Soil Contamination
Foundation Waterproofing Defect & Seepage Hazards
Cargo Cover Failure & Transit Material Release
Hidden Mold Disturbance & Containment Failures

Waterproofing Chemical Spills & Drainage Contamination

Leaks, releases, or spills of waterproofing materials, such as sealants, adhesives/mastic, caulk, or paint, could enter drains, such as interior floor drains or exterior storm drains at the jobsite, and eventually flow into sanitary sewers damaging the downstream wastewater treatment plant. Leaks, releases, or spills of waterproofing materials at a property could negatively impact the soil and potentially travel to groundwater beneath the site, contaminating drinking water sources.

Legacy Asbestos & Lead-Based Paint Disturbance

Waterproofing contractors may inadvertently disturb asbestos or lead-based paint in residences or buildings where they are working. Asbestos was used in some older insulation, including vermiculite and blown-in attic insulation, and asbestos can also be found in other areas, such as wall cavities and ceiling or floor tiles. Disturbance of existing pollutants could result in environmental liability to the contractor.

Waterproofing Waste Segregation & Manifest Liability

Waterproofing projects generate waste materials such as packaging, unused chemicals, and construction debris. Improper waste disposal can lead to cleanup costs and environmental tort liability. Businesses are required to determine whether the waste they generate is hazardous. Hazardous waste may also be inadvertently mixed with construction debris/waste and disposed of improperly. Investigations for improper disposal at a disposal facility can result in potential liability for all parties that manifested waste to the facility.

Concrete Repair Defects & Structural Integrity

Waterproofing contractors may specialize in repairing concrete structures that have been damaged by water infiltration or other environmental factors. This could involve patching cracks, repairing spalling or deteriorated concrete, and reinforcing structural elements to prevent further water damage. Improper repair work could exacerbate the water infiltration issue and affect the integrity of the property or lead to mold growth.

Chemical Leaks & Soil Contamination Hazards

Spills or leaks of chemicals and materials used in waterproofing can lead to soil pollution. Contamination of soil with hazardous substances can negatively impact soil quality, leach into groundwater, or be absorbed by plants. Cleanup costs, bodily injury, and property damage claims could result.

Respirable Crystalline Silica & Concrete Dust Exposure

Crystalline silica is one of the minerals present in sand, aggregate, and cement used in concrete mixtures by contractors. Construction processes such as blasting, cutting, chipping, drilling, and grinding make silica respirable. Third parties can breathe in crystalline silica dust, and exposure can lead to respiratory illnesses, including lung cancer and silicosis, which in severe cases can be disabling or even fatal.

Preconstruction Services & Design Modification E&O

Waterproofing contractors may be involved in preconstruction services and provide input on design/constructability, scheduling, and costs that involve concrete structures. They can advise on waterproofing solutions during the design phase and execute the installation of waterproofing systems as part of the construction process. Contractors may also make modifications to design specifications while at the jobsite. Malfunctions arising from these inputs/changes create a direct professional responsibility for the contractor.

Perimeter Excavation & Unknown Soil Contamination

Contractors may be required to excavate the perimeter of a building’s foundation to expose the exterior walls for waterproofing. This allows contractors to apply waterproof membranes, coatings, or sealants to prevent water infiltration into the foundation walls. During excavation and grading, unknown pre-existing contaminated soil could be collected and spread to clean areas of a site or create environmental liability in the transportation and disposal of the contaminated soil.

Foundation Waterproofing Defect & Seepage Hazards

Waterproofing contractors frequently work on foundation structures, which often involve concrete. They may provide services such as installing waterproof membranes, coatings, or drainage systems to prevent water from seeping into basements or crawl spaces and causing damage to the foundation. Improper installation or use of inadequate materials could lead to mold growth.

Cargo Cover Failure & Transit Material Release

Loose materials that are hauled and potentially released during transport, such as construction debris, roofing materials, and old insulation, should be covered and secured with a tarp or other cover material. Failure to properly cover the waste could generate airborne dust or release loose materials to the road, leading to cleanup and third-party property damage claims.

Hidden Mold Disturbance & Containment Failures

Mold can be encountered in non-visible areas such as insulation, attics or roofs, crawl-space conduits, behind wallboards, on sheetrock, under carpeting, and in piping or duct runs. Small spores and fragments are readily released when mold-impacted areas are disturbed during waterproofing. The mold can disperse further and expose building occupants without careful containment and cleanup. Failure to identify, dry, or remove all moisture-impacting building materials could allow for continued mold growth, which may lead to property damage and bodily injury claims.

A Combined Pollution & Professional Liability Policy 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 and property damage

Third-party claims for cleanup

First-party emergency response cost

Mold, legionella, bacteria, fungi, lead, asbestos, and more

Sudden and accidental coverage for owned/leased locations

Non-owned disposal site liability

First and third-party transportation pollution liability

Loading and unloading

Silt and sedimentation

Mitgaton/rectification

Excess/contingent design

Defense of third-party claims

Natural resource damage

Claims Scenarios & Examples

A contractor did not identify a sewer line before excavating around the perimeter of a building. The contractor struck t line causing a release of raw sewage, contaminating soil and groundwater, and infiltrating the basement of the businesses. The cleanup included excavating several tons of impacted soil and caused the businesses to be shut down until the cleanup was complete. The breach resulted in claims for business interruption and cleanup costs.e
During excavation around the foundation of a home, a waterproofing contractor punctured an unknown abandoned heating oil tank, releasing residual heating oil into the subsurface. Due to sandy soils and a shallow groundwater table, the oil spread quickly. Although the tank was only 250 gallons, the cleanup became very involved due to the required excavation of impacted soils and the ongoing groundwater monitoring until the environmental regulators could grant closure. Remediation and project delay costs exceeded $250,000.
A contractor was driving a tanker that held liquid waterproofing material to a job. A collision occurred, and 100 gallons of the liquid was released onto the road. The spill was reported to the Department of Environmental Protection immediately, and the contractor had to pay the cleanup costs.
An apartment building owner hired a waterproofing contractor to apply a waterproofing sealant to the surface of a deck. The company failed to properly ventilate the area, resulting in toxic fumes entering a tenant’s apartment, causing her to become sick. The company and the building owners settled the personal injury claim with the tenant and then sought to recover their expenses under the contractor’s commercial general liability (CGL) policy. The insurance company for the contractor argued that the claim was excluded under the CGL policy’s absolute pollution exclusion clause.

Final Consideration

As a contractor you can be faced with the cost to defend yourself against allegations or legal action from pollution or professional 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 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

Download PDF