Property Types

Wineries & Vineyards

Wineries and vineyards have pollution exposures that can occur from their operations. The storage, handling, and application of pesticides, herbicides, and fertilizers, as well as the storage and use of petroleum products for farm equipment, could create a release that collects in stormwater run-off and enters surface waters or contaminates soil and groundwater. Grapevine growing activities impact surface cover and produce soil erosion, which can collect in stormwater and discharge to surface waters. Wastewater may be generated from cleaning tanks, barrels, and buildings and, if not handled properly, can cause environmental damage. Also, fugitive dust can be generated from growing activities, and harmful gases may be used in wine making processes. Releases can cause bodily injury to third parties.

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Environmental Exposures May Include

Pesticide Run-off & Soil Leaching
Pesticide Drift & Air Contamination
Fugitive Dust & Particulate Emissions
Hazardous Waste Management & Disposal Liability
Chemical & Tank Storage Releases
Agricultural Equipment & Vehicle Fluid Leaks
Fertilizer Run-off & Nutrient Pollution
Wastewater & Facility Washdown Operations
Agricultural Air Emissions & VOCs
Hazardous Gas Exposure & Winery Operations
Cargo Transportation & Off-Site Transit Spills

Pesticide Run-off & Soil Leaching

Pesticides cover many compounds, including insecticides, fungicides, herbicides, and plant growth regulators. Excessive or poorly timed application of pesticides can cause these pollutants to leach into underlying soil or groundwater or migrate in stormwater to surface water or adjacent properties. Pesticide contamination can impact the drinking water supply or cause natural resource damage to non-target organisms, ranging from beneficial soil microorganisms to bees, wildlife, and aquatic systems.

Pesticide Drift & Air Contamination

Pesticide drift can create hazardous air pollution that can travel outside the intended area when sprayed on the ground or in the air. Pesticide sprays can directly hit non-target vegetation, drift, or volatilize from the treated area and contaminate air, soil, and non-target plants. Some pesticide drift occurs during every application, even from ground equipment. Weather conditions at the time of application and temperature and relative humidity change the spread of the pesticide in the air.

Fugitive Dust & Particulate Emissions

Equipment movement on unpaved soils or operations that involve the movement of soils can cause fugitive dust emissions, which can impact third parties.

Hazardous Waste Management & Disposal Liability

Generated wastes, including leftover spray solutions, excess pesticides, waste automotive fluids, tires, batteries, and other maintenance materials, may be classified as hazardous and require special disposal procedures. Improper handling, storage, or disposal can result in regulatory fines and disposal of these wastes at third-party disposal facilities can lead to environmental tort liability.

Chemical & Tank Storage Releases

An accidental release during storage, handling, or loading/unloading of petroleum products, automotive fluids, and agriculture chemicals can lead to environmental cleanup and tort liability. Underground and aboveground storage tanks can leak, and improper or no secondary containment can allow the stored contents to contaminate soil and groundwater or migrate to surface waters or adjacent properties. Storage of concentrated ammonia-based fertilizers may react with other stored incompatible materials (e.g., lime, urea, nitrates, and sulfur) if leaked or spilled, resulting in a fire and emitting air pollutants.

Agricultural Equipment & Vehicle Fluid Leaks

Fuel, oil, and hydraulic fluid leaks from farm equipment and vehicles can occur from a rupture or malfunction of parts or equipment rollover. Leaks can also occur during equipment and vehicles’ use, storage, and maintenance and leach into soil or groundwater or collect in run-off. Spills can also occur during the loading and unloading of fuel and fluids into equipment and vehicles.

Fertilizer Run-off & Nutrient Pollution

Fertilizers are rich in nitrogen and phosphorus. Water and soil containing nitrogen and phosphorus can collect in stormwater run-off, wash into nearby waters, or leach into ground waters. Stormwater run-off can harm water quality and human health and cause excess algae blooms, damaging ecosystems and aquatic life. High nitrate concentrations in drinking water can cause methemoglobinemia, a potentially fatal infant disease known as blue baby syndrome.

Wastewater & Facility Washdown Operations

Wastewater may be generated from cleaning out pesticides, mixing or holding containers, and hosing down barrels, tanks, and buildings associated with winemaking. Releases of insufficiently treated wastewater could occur, or spills could occur during the cleaning or transfer of wastewater, creating environmental risks.

Agricultural Air Emissions & VOCs

Particulate and ozone emissions can be created by growing operations, including moving equipment or vehicles on unpaved roads, dust stirred by winds, and combustion of fossil fuels and wood. Volatile organic compounds can also be emitted from certain pesticides and petroleum products.

Hazardous Gas Exposure & Winery Operations

Anhydrous ammonia, sulfur dioxide, and ozone are harmful gases that may be used in winery operations. Carbon dioxide is formed during fermentation and can act as an asphyxiant in confined spaces. Releases of these gases can injure workers or third parties present at a winery.

Cargo Transportation & Off-Site Transit Spills

Accidental releases during the transportation of the wine, fuel, agricultural chemicals, waste oils, or wastewater from a winery due to improper cargo securement, a loose valve, or vehicle upsets or overturns can result in environmental liability.

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

Mold, bacteria, viruses, legionella, and more

Business interruption resulting from pollution conditions

First and third-party transportation pollution liability

Loading and unloading

Defense of third-party claims

Illicit abandonment

Silt and sedimentation

Claims Scenarios & Examples

Pesticides were being mixed in a holding tank for use at a vineyard. As the pesticide mix was being pumped into a nurse tank, the hose came loose and spilled pesticide, which migrated to a storm drain before emergency action was taken to plug the drain. The storm drain discharged into a creek, which caused a fish kill. The company was liable for emergency response and cleanup costs, and regulatory agencies fined the company.
Pesticides were applied at a vineyard. The wind spread pesticide overspray onto an adjacent organic farm. The organic farm owner claimed that the pesticide drift tainted his crops. Federal regulations specify that “organic” crops, if tainted by pesticides, must be sold at lower, non-organic prices, and tainted fields must be removed from production for three years. Ultimately, the vineyard paid the organic farm damages for lost production.
An aboveground storage tank located at a vineyard was used to store diesel fuel for its farm equipment. The tank was situated on soil and did not have secondary containment. The driver stepped away during filling, and the tank was accidentally overfilled, spilling diesel fuel onto the soil. Impacted soils had to be excavated and disposed of off-site. Confirmation soil sampling was required to verify that the cleanup was complete.
A vineyard used a nurse tank attached to a truck to transport pesticides to its field down a public road. The nurse tank was not attached properly and severed from the truck, overturning and spilling pesticide on the road. The vineyard was liable for the cleanup.
A vineyard was being sold to be redeveloped for housing. Sampling of soils was conducted, and elevated levels of copper were detected. It was determined that the copper-containing fungicides applied to the vineyards caused contamination. The vineyard had to perform remediation.
A vineyard stored diesel fuel in an underground storage tank for fuel supply. The piping from the UST to the dispenser had a crack in a joint that went undetected for an extended period. A substantial amount of fuel was released into the soil and groundwater. Remediation costs exceeded $600,000.
A winery had a large blending tank that burst, spilling 90,000 gallons of red wine into an adjacent river. The spill changed the pH of the river, causing a fish kill. Regulatory authorities fined the winery, and a local environmental organization sued the winery for natural resource damages. Additionally, the wine stained the banks of the river red, and regulatory agencies required that the winery remove the residue from the river banks.
A winery had an industrial refrigeration system that used anhydrous ammonia. A release of ammonia occurred and entered a nearby tasting room where guests were located. One person died, and others were injured and had to be hospitalized. The winery was sued by the family of the deceased and by the injured guests. The winery also was fined by state and federal regulatory agencies to resolve environmental violations related to the release.

Final Consideration

Your business can be faced with the cost to defend itself against allegations or legal action from pollution related events, regardless if you are 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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