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Every construction project has pollution liability risks. Know the causes of loss your clients face so you can help them to avoid gaps in their insurance coverage. Choose a risk below to open its description.
SEALANTS
PROFESSIONAL SERVICES ACTS, ERRORS OR OMISSIONS
LEAD
FLY ASH
CONSTRUCTION SITE RUNOFF OR WATER PUMPING
COMPLETED OPERATIONS
CEMENT PRODUCTION
ACCIDENTAL SPILLS
TRUCK AND VEHICLE USE
Any discharge of an irritant or contaminant into the air, surface water or groundwater can trigger a pollution claim. An inadvertent discharge of a material that is seemingly nontoxic, such as detergents in wash water or oils and solvents, could leave your client liable.
Many concrete additives, such as fly ash used to make a stronger mix, contain toxic elements. And some materials that are thought of as nonhazardous may be considered pollutants if they wash into surface water. Accidental releases can also occur during pouring, curing or cleanup. In addition, latex coatings applied to concrete during construction can be hazardous if they are not applied properly or if they wash off before they are dry, as can happen during sudden rainstorms.
For every class of construction, even if a job is finished and your client is no longer on the site, your client still could be held liable if something they did causes pollution later. A common example is water leaks that trigger mold, which might not be discovered for weeks or months – and can be very costly to eradicate.
Every construction site has potentially hazardous materials that can escape during rainstorms or cleanups, and particularly during excavation. If there is contaminated soil runoff from excavation, those materials could build up in rivers and streams. Pumping water from a site – such as during bridge construction or if the area being excavated is filled with rainwater – brings additional risks. Those can include failure to test that water for contaminants and to contain it if necessary.
Excavation projects bring multiple risks. If the soil being removed is contaminated, it must be contained and disposed of properly. Construction sites also are particularly vulnerable to site runoff during excavations, when contaminated soil can build up in streams or rivers. Another potential hazard from excavation is contamination from inadvertently breaking an underground sewage pipe.
This byproduct of burning coal in power plants is commonly used as a concrete additive or soil stabilizer for road embankments. Fly ash contains several types of toxins and is dangerous to consume or inhale. Fly ash can make concrete stronger, but the mixing process must be handled carefully to avoid sending any ash into the air or water.
Lead-based paint was banned for household use in the late 1970s because exposure to even small amounts can cause severe health problems, particularly in children. But it is still found in older buildings (which might have lead pipes too) and on some bridges. Sometimes excavations can expose lead in soil. In all contractor operations in which lead is encountered or exposed, it has to be carefully contained and removed.
Sometimes pollution is the result of a design flaw, or improper construction or installation by your clients or by a third party. For example, mistakes in HVAC system designs can result in the spread of Legionella bacteria, which can cause illness or even death.
Road builders and pavers apply various types of sealants to streets, highways, parking lots and other locations to improve the durability of the material. These compounds take some time to dry, and sudden storms, for example, can cause polluting runoff if the sealants have not yet hardened. Additionally, large spills can occur as materials are applied, damaging surrounding habitats.
Trucks, heavy equipment and other vehicles need to be properly maintained. Leaking vehicles can spread pollutants – such as gasoline, oil or antifreeze – as they move, or can contaminate areas where they are parked or stored. Even small leaks that build over time may run off into surface water or contaminate groundwater.
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METAL PARTICLES
Almost every type of construction – and many types of assembly work – involves cutting or grinding metal at some point. The resulting metal particles, which are sometimes too small to see with the naked eye, can easily become airborne and are dangerous to third-party subcontractors or employees of the facility owner.
METAL PARTICLES (AIR)
YOU COULD BE MISSING SOMETHING
ENVIRONMENTAL PROTECTION
UTILITY RUPTURE
PCBs
MOLD AND BACTERIA
When plumbing and HVAC systems are improperly installed or malfunction, mold and bacteria can grow in ducts and on surfaces. In fact, cooling towers used in air conditioning systems are one of the largest sources of Legionella, a bacteria that can cause illness and even death. Small plumbing leaks, perhaps from a fire sprinkler system, can generate mold inside walls that might not be discovered for some time, resulting in costly claims. Even if your client does not work with plumbing or HVAC systems, they could still trigger a claim if their work causes a leak that results in bacteria or mold growth.
Polychlorinated biphenyls are highly toxic substances that were commonly used in electrical equipment, such as transformers. However, they had many other industrial uses as well, including cable insulation, fluorescent light fixtures and hydraulic systems. PCBs were banned in the U.S. in 1979, but today contractors may have to remove and possibly store old equipment containing these dangerous compounds. Every piece of such equipment is at least 40 years old, which means the risk of leakage is high.
Accidentally disrupting utilities is a persistent risk during construction. For example, inadvertently breaking a sewage pipe or oil pipe can result in serious pollution if not contained quickly.
PESTICIDES AND HERBICIDES
If an incidental part of your client’s work involves pesticides or herbicides – road builders that must replant or maintain certain areas, for example – there is a risk of accidental spills or runoff of chemicals that can contaminate water systems.
REFRIGERANTS
DISPOSAL
Construction waste must be disposed of properly. General contractors and haulers can be held liable for any pollution caused by debris, even if that contamination is not discovered for some time. For example, construction and demolition debris deposited in a regular landfill by your client could contaminate groundwater years later, and your client could be held liable.
Ammonia, glycol and freon are commonly used in refrigeration and air conditioning systems. All of them can be hazardous. For example, HVAC installers and repairers must store and transport these substances carefully, and quality assurance control is extremely important in their work. Improperly installed systems may result in a leak of refrigerants.
MOBILE TANKS AND EQUIPMENT
Temporary storage tanks at construction sites – often filled with fuel for heavy equipment for generators – can leak, or their contents can be spilled during filling or dispensing. Vandals at the site may also cut fuel lines, resulting in spills.
STORAGE AREAS
SOIL STABILIZERS
Fly ash, a byproduct of burning coal in power plants, is a common component of soil stabilizers used to strengthen embankments and roadbeds and prevent erosion. The ash contains several toxins and must be applied under the right conditions. Sudden rainstorms, for example, can cause toxic runoff into streams and rivers, or these toxins could seep into groundwater.
Drums or equipment stored on-site may leak fuel, oils or other compounds that can seep into groundwater or run off into surface water. Even small leaks that build up over time may be problematic.
