Contractors

Plastering & Stucco

There are a variety of environmental exposures that affect plastering and stucco contractors. Fugitive dust from sanding activities or mixing dry products can contain hazardous materials, including silica. Off-gassing from joint compounds and bonding agents can impact indoor air quality. Mold can grow on plastering materials from moisture absorption during storage, improper installation, or sealing. Repair or renovation work can inadvertently disturb existing asbestos or lead-based paint and release hazardous particulates. Improper containment or disposal of washout water can lead to cleanup liability and natural resource damage.

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Environmental Exposures May Include:

Airborne Plaster Dust
Respirable Crystalline Silica
Moisture Intrusion Behind Stucco
Stucco Failure in Variable Climates
Mold Growth on Plaster Materials
Asbestos Disturbance
Lead-Based Paint Disturbance
VOC Off-gassing
Washout Water Contamination

Airborne Plaster Dust

There are a variety of environmental exposures that affect plastering and stucco contractors. Fugitive dust from sanding activities or mixing dry products can contain hazardous materials, including silica. Off-gassing from joint compounds and bonding agents can impact indoor air quality. Mold can grow on plastering materials from moisture absorption during storage, improper installation, or sealing. Repair or renovation work can inadvertently disturb existing asbestos or lead-based paint and release hazardous particulates. Improper containment or disposal of washout water can lead to cleanup liability and natural resource damage.

Respirable Crystalline Silica

Any work done with concrete, cement, mortars, and numerous types of clay uses a product containing a severe disease-causing, respirable crystalline silica. Releases may occur by transporting, handling, and mixing dry materials for new applications or repairs. Dry emissions generate potential inhalation exposures because airborne particles can stay suspended and concentrate or migrate off-site with wind currents. Once inhaled, particles accumulate in the lungs and cause scarring and formation of nodules. Exposure may lead to chronic obstructive pulmonary disease (COPD), cancer, kidney disease, or silicosis, which can result in third-party bodily injury claims.

Moisture Intrusion Behind Stucco

Water and moisture can get behind the stucco wall if not properly sealed. The moisture can’t drain or dry once it gets behind the walls. The trapped moisture can grow mold or rot and severely damage wooden studs and wall sheathing underneath, potentially resulting in cleanup and third-party claims.

Stucco Failure in Variable Climates

Stucco works well in hotter and drier climates. It can become compromised in areas with changing seasons and variations in moisture. The material may warp and crack if not applied and sealed properly in these areas. Cracks or tears in the stucco surface can allow water to migrate into underlying building materials, leading to potential mold growth.

Mold Growth on Plaster Materials

Mold growth can occur on plastering materials through moisture absorption, either by improper storage of materials or direct absorption of water vapor at high humidity levels.

Asbestos Disturbance

Asbestos was formerly used in building and construction materials for its insulating properties and to increase the strength and durability of products. Older buildings may have asbestos-containing materials (ACM) in plaster, cement, concrete, putties, caulk, and spray-on coatings. ACM can be inadvertently disturbed and released during repairs or remodeling, including by preparing surfaces such as textured coverings, especially when sanding or grinding tools are used. Damage from unintentional accidents can lead to a release, potential cleanup, and third-party claims.

Lead-Based Paint Disturbance

Lead-based paint may be found on the interior or exterior of a structure. This paint may be dislodged during the repair or renovation of existing plaster or stucco, releasing lead particulates into the surrounding environment. Third-party claims could result from exposure.

VOC Off-gassing

Volatile organic compounds (VOCs) from bonding agents, mortars, gels, etc., may result in off-gassing and impacting indoor air quality. Finishes, acrylic-modified plasters, spray emulsions, and polymers may give off hazardous fumes when air drying. Outdoor applications of materials can result in the migration of fumes to neighboring properties. Exposure or perceived injury from these fumes may result in third-party claims.

Washout Water Contamination

Discharge from washout facilities used to clean tools and equipment for materials such as stucco, paint, mortar, plaster, or grout can leach into the ground and contaminate groundwater or stormwater run-off. Improper containment, handling, or disposal of wastewater can result in environmental cleanup, natural resource damage, or third-party liability. Wash water can contain hazardous materials that inhibit plant growth and harm aquatic life if run-off migrates to a lake or stream.

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

Mold, legionella, bacteria, and fungi

Lead and asbestos

Sudden and accidental coverage for owned/leased locations

First and third-party transportation pollution liability

Loading and unloading

Non-owned disposal sites

First-party emergency response costs

Defense of third-party claims

Claims Scenarios & Examples

A plastering firm installed stucco on a condominium complex building project. However, the stucco wasn’t properly sealed, which allowed water to seep in behind the walls, deteriorating the trusses and structural supports. Toxic mold grew as a result of the water intrusion. A claim was filed against the contractor, and the plaintiffs were awarded $7.7 million.
A plaster contractor was hired to do work on a school. The contractor used a grinder to remove unidentified lead-based paint, spreading paint dust and fibers throughout the library and six other rooms in the school. The school district sued the contractor for the cleanup of the lead dust.
A stucco contractor was working on a project repairing damaged concrete in an existing building and did not properly control dust. The dust from the stucco work was sucked into the ventilation system of the building. Tenants of the building sued the contractor for bodily injury from exposure to crystalline silica, which was found in the dust.
The Attorney General’s office sued a building company for failing to follow manufacturers’ recommendations, building codes, and industry practices when installing stucco. The contractor’s work left significant damage in several homes due to water infiltration.
A plaster subcontractor was assigned almost equal liability with the general contractor in settling a school project claim. Mold was identified in the school’s walls, and the school had to be shut down for a week. The school district subsequently filed a claim against the general contractor and plaster subcontractor, alleging defective work led to the water intrusion and mold growth. As a result, the plaster subcontractor and general contractor were held liable for $2.2 million and $2.3 million, respectively.
A group of residents filed a class-action lawsuit against the plastering contractor that did stucco work on their homes. The stucco was done improperly, and mold grew as a result. A multi-million dollar settlement was reached.

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