Installation and maintenance of wind turbines involve using various materials, such as adhesives, solvents, sealants, lubricating oils, etc., that can be flammable, toxic, and hazardous. Accidental spills and leaks at the storage location, during transportation, and at the jobsite may cause third-party exposures and cleanup. These materials can also emit harmful, hazardous toxins or fumes that expose third parties. Flammable products may catch fire, and other contained materials or hazardous vapors can be released.
Subcontractors may be used for electrical, mechanical, concrete, site work, and other tasks. A contractor may have to defend against claims relating to work for which they were responsible due to subcontractors’ hiring, selection, and supervision.
During excavation and grading, unknown pre-existing contaminated soil could be collected and spread. Contamination could be spread to clean areas of the site or create environmental liability in the transportation and disposal of the excavated material.
During construction activities, bare ground and exposed earth are vulnerable to erosion by wind and water. Improper erosion control can lead to surface run-off of soil particles, impair the functioning of stormwater drainage systems, cause ecological damage to streams and rivers, and cause adjacent property damage. Natural resource damage claims and third-party claims can result. Also, contractors may face regulatory action such as cleanup orders, fines, and penalties from federal, state, or local regulators if they do not properly control silts/sediments.
Wind turbines are often constructed on concrete bases. Materials used during concrete installation can be hazardous or toxic, including sealants, coatings and emulsions, mortar admixtures, acids, and chemicals used to harden concrete. Concrete washout water contains toxic materials and is caustic and corrosive. Spills, improper storage, and exposure to rainfall can cause chemicals or washout wastewater to migrate to surface water, groundwater, and soils resulting in cleanup and potential natural resource damage claims.
Heavy equipment and portable refueling tanks may be brought to and stay on a jobsite during construction. Release of fuels, lubricant oils, and chemicals resulting from accidental spills, leaks, or vandalism can discharge pollutants into the soil and groundwater and require cleanup.
Lubricating and gear oils must be provided for turbine equipment during initial construction, and oils must be periodically changed. Fresh or waste oils can be spilled while loading or unloading or during transport, leading to cleanup, third-party, or natural resource damage claims.
Improper disposal of jobsite debris and wastes, chemicals used for installation or maintenance, or waste oils can lead to cleanup and third-party liability. There also may be legal consequences for violating federal or state waste disposal requirements.
Companies may provide in-house design services that can result in professional liability. Design services may include performing some or all of the design work relative to an aspect of a wind turbine project or providing professional opinions on design aspects. Design exposures can include evaluating the location of a project, design, and engineering of the systems, selection of parts and equipment, orientation of wind turbines, etc. Errors and omissions can delay time, overrun budgets, and result in rework.
Contractors may make modifications to design specs while at the jobsite. Malfunctions arising from these changes create a direct professional liability for the contractor.
Subsurface work can impact underground utilities, including gas lines, sewage pipes, or unknown hazards such as abandoned storage and septic tanks. Accidental puncture and release of fuel oil, chemicals, toxic gases, or sewage can contaminate soil and groundwater and release hazardous air emissions, resulting in cleanup costs and third-party bodily injury and property damage claims.
Wind contractors may be able to combine Commercial General Liability, Contractors Pollution Liability, and Professional Liability into one package policy. Excess liability may also be offered.
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
Mold, legionella, bacteria, fungi, lead, and asbestos
First and third-party transportation pollution liability
Sudden and accidental coverage for owned/leased locations
Non-owned disposal sites
Loading and unloading
Defense of third-party claims
Natural resource damage
Silt and sedimentation
Professional liability
Mitigation/rectification
Excess/contingent design
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.