Contractors

Wind Energy

Energy contractors that construct wind turbines can face environmental liability through various operations, materials, and disposal activities. Contracting operations can lead to an accidental release of existing pollutants or create a pollution release from materials used, stored, and transported, such as oils, adhesives, sealants, and cleaners. Road building and site work performed before the construction of a wind turbine can disturb soils and lead to run-off particulates, which can impact stormwater drainage systems and cause environmental impacts to surface water bodies. Waste materials could be classified as hazardous, and improper handling and disposal could lead to environmental liability and potential fines. Energy contractors that construct wind farms can be exposed to professional liability by direct design services, design input, and changes to system design.

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Environmental Exposures May Include:

Hazardous Adhesives and Lubricants
Subcontractor Hiring and Supervision
Pre-Existing Contamination
Erosion and Sediment Control
Concrete Installation and Washout
Equipment Maintenance and Jobsite Fueling
Turbine Oil Handling and Exchange
Jobsite Waste Disposal
Design Errors and Omissions
On-Site Design Modifications
Underground Utilities

Hazardous Adhesives and Lubricants

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.

Subcontractor Hiring and Supervision

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.

Pre-Existing Contamination

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.

Erosion and Sediment Control

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.

Concrete Installation and Washout

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.

Equipment Maintenance and Jobsite Fueling

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.

Turbine Oil Handling and Exchange

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.

Jobsite Waste Disposal

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.

Design Errors and Omissions

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.

On-Site Design Modifications

Contractors may make modifications to design specs while at the jobsite. Malfunctions arising from these changes create a direct professional liability for the contractor.

Underground Utilities

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.

Contractors Pollution Liability Can Provide Coverage For

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

Claims Scenarios & Examples

The US EPA brought charges against a contractor alleging several dust violations. The company was a wind turbine project contractor who failed to comply with dust control rules during earth moving and dust generation operations at various wind turbine site projects. The company agreed to a $110,000 settlement with the EPA to resolve the allegations.
Transformer oil was being transferred from a delivery truck into turbines at a project site. During the transfer, the reservoir for a turbine was accidentally overfilled, spilling oil into the surrounding soil. An emergency response contractor was called, which contained the release. The contractor responsible for the construction of the wind turbine project was sued for the emergency response costs and cleanup of impacted soils.
A wind energy contractor was constructing a project on a mountain ridge. Their work undermined a slope that created a mudslide. The mudslide reached a lake used for potable water. The state filed a claim against the contractor for damage to the lake.
A wind turbine project was being constructed on a former military base. During the rough grading of the project, the contractor unknowingly spread a pocket of contaminated soil across the site. A suit was filed against the contractor for the costs of cleaning up the project site.
An energy contractor subcontracted crane operations during the construction of a wind turbine. One of the turbine blades fell while being lifted because it was not properly rigged. The blade hit a fueling tank that was present on the site, resulting in a release of diesel fuel. Soil and groundwater were impacted, and a sheen was noted in a nearby stream. The crane subcontractor’s general liability insurance policy refused coverage for the resulting cleanup costs, so the site owner sued the energy contractor for cleanup costs.
A wind turbine project contractor changed the bearings used on a turbine to what they believed to be an equivalent type. However, the bearings failed, causing a few of the generators in the wind turbines to fail. The failure led to costly repairs and revenue lost from being shut down.

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.

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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