Contractors

Weatherization

Weatherization involves protecting homes or other buildings and their interiors from sunlight, precipitation, and wind to reduce energy consumption within the buildings. Contractors who perform weatherization services face numerous environmental exposures. These exposures range from encountering mold, asbestos, and lead in paint and piping to chemicals used in caulking materials, mastics, adhesives, and sealants during weatherization. Transportation and disposal of used materials collected at jobsites, such as construction debris, roofing material, and insulation, can pose an environmental liability for these companies. Releases of potentially toxic vapors from materials used in the weatherization process, such as sealants, caulk, and paint, could harm occupants of the homes or buildings where the work is being conducted, leading to third-party bodily injury claims against the contractor.

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Environmental Exposures May Include

Special & Hazardous Waste Characterization & Disposal
Cargo Cover Failure & Loose Material Transit Release
Weatherization Product Fires & Contaminated Firewater Run-off
Hidden Mold Disturbance & Post-Weatherization Growth
Indoor Air Quality Degradation & Ventilation Deficits
Legacy Asbestos & Lead-Based Paint Disturbance
Chemical Storage Spills & Incompatible Chemical Handling
Roofing & Aperture Sealing Defect Leaks
Fiberglass Particle Release & Inhalation Hazards
Chemical Off-Gassing & Application Vapor Intrusion
Site Material Spills & Drainage System Contamination

Special & Hazardous Waste Characterization & Disposal

Used personal protective equipment (PPE), high-efficiency particulate air (HEPA) filters or equipment washing fluids may be considered special or hazardous waste when discarded and require proper transporting and disposal procedures. Additional jobsite wastes collected for disposal may include hazardous materials such as asbestos, lead paint, insulation, cleaning fluids, and wastewater that require proper characterization and segregation and could result in disposal liability. Improper waste disposal may result in legal consequences for violating hazardous waste requirements and could lead to cleanup and third-party liability claims.

Cargo Cover Failure & Loose Material Transit Release

For loose materials that are hauled and potentially released during transport, such as construction debris, roofing materials, and old insulation, the vehicle 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.

Weatherization Product Fires & Contaminated Firewater Run-off

Some products used in the weatherization process are flammable and may result in a fire that spreads throughout the building and may release other contained materials producing hazardous vapors. Firefighting solutions such as water and foam could create contaminated run-off that spreads to nearby storm drains or properties, resulting in environmental cleanup and tort liability.

Hidden Mold Disturbance & Post-Weatherization Growth

Mold can be encountered in non-visible areas such as insulation, attics or roofs, crawl-space conduits, behind wallboard, on sheetrock, under carpeting, and in piping or duct runs. Small spores and fragments are readily released when mold-impacted areas are disturbed during weatherization. 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.

Indoor Air Quality Degradation & Ventilation Deficits

Improper weatherization of residences or buildings may threaten indoor air quality and negatively impact occupant health and safety. Suppose the contractor fails to properly install fresh air ventilation during the weatherization process. In that case, it might cause the build-up of deadly and combustible gases, radon, or volatile organic compounds used in many building materials, which could lead to third-party injury liability. Improper weatherization could also impact ventilation in the building, resulting in higher humidity levels that could lead to mold growth.

Legacy Asbestos & Lead-Based Paint Disturbance

Weatherization contractors may inadvertently disturb asbestos or lead-based paint in residences or buildings where they are working. Asbestos was used in some older insulations, 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.

Chemical Storage Spills & Incompatible Chemical Handling

Spills and leaks of chemicals, solvents, and cleaners at the storage location or during transportation, loading, or unloading may cause third-party injury and cleanup liability. Combinations of incompatible chemicals are prone to react violently or produce toxic by-products/gases when stored together or mixed and cause third-party bodily injury claims against the contractor.

Roofing & Aperture Sealing Defect Leaks

Roofing repairs, as part of the weatherization process, can create leaks that allow water to enter the premises. Moisture intrusion could also occur from improperly installed or sealed doors and windows. Mold growth due to leaks and moisture intrusion could lead to third-party claims for property damage and bodily injury.

Fiberglass Particle Release & Inhalation Hazards

Removing and installing insulation in walls, floors, ceilings, around ducts, pipes, water heaters, near foundations, and sills could release fiberglass particles and expose unprotected residents or building occupants. Exposure to fiberglass particles could lead to third-party personal injury claims against the weatherization contractor.

Chemical Off-Gassing & Application Vapor Intrusion

Materials used during the weatherization process include chemicals, sealants, coatings, adhesives, surfactants, degreasers, deodorizers, and antimicrobials, which can release hazardous and irritating fumes to occupants during application, curing, or drying that can lead to third-party injury claims.

Site Material Spills & Drainage System Contamination

Leaks, releases, or spills of weatherization 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 weatherization materials at a property could negatively impact the soil and potentially travel to groundwater beneath the site, contaminating drinking water sources.

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 and property damage

Third-party claims for cleanup

First-party emergency response costs

Mold, legionella, bacteria, fungi, and viruses

First and third-party transportation pollution liability

Loading and unloading

Sudden and accidental coverage for owned/leased locations

Non-owned disposal sites

Defense of third-party claims

Lead and asbestos

Claims Scenarios & Examples

A government housing agency worked with a weatherization contractor on a project to help improve the homes of low-income residents. They provided energy-saving improvements to the home, including insulation and new windows and doors. After the project was completed, one homeowner claimed that she felt ill, was constantly tired, and had rashes on her skin and a sore throat. It was discovered that cellulose insulation that had been blown in her attic had seeped through a hole in the ceiling that had not been sealed by the contractor and was the source of her illness. She sued the contractor and housing agency for the damage to her health and home, and she could not live in her home for some time.
An apartment building owner hired a weatherization company 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.
After a low-income weatherization program completed work on their home, a family experienced the growth of black mold in their home. The family sued the county responsible for the program, claiming that the mold was due to faulty insulation installation, causing moisture build-up. The family’s two children became sick, and their acute asthma worsened. The family sought free emergency housing and demanded that their home be completely gutted and rebuilt.
A weatherization 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.
A nonprofit weatherization group performed work on an older two-story home with a dirt crawlspace. After completing the work, the homeowners sued the group, complaining of mold problems that aggravated their allergies. It was discovered that mold was growing due to dampness in the dirt crawl space under the home that the contractor had not properly ventilated during the weatherization project. The homeowners sued for damages. The jury eventually awarded them a new home.

Final Consideration

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.

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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