Contractors

Septic

Environmental exposures are inherent in septic contractors’ operations and septage handling. Septage pumped from septic tanks includes scum, sludge, and effluent that can contain harmful biohazards, nutrient pollutants, toxic gases, and chemicals, which may cause serious health hazards and environmental damage. An accidental release can occur during pumping or repair to septic systems or cesspools or while providing or cleaning chemical toilets. Additional environmental exposure can occur during transportation, unloading, and disposal operations or from cleaning trucks and equipment. A release can contaminate soil and groundwater or collect in stormwater run-off, which can discharge into nearby bodies of water.

Download PDF

Environmental Exposures May Include:

Biohazard & Pathogen Exposure from Septage
Nutrient Pollution (Nitrates & Algal Growth)
Toxic & Explosive Sewer Gases
Damage to Septic Systems from Heavy Equipment
Underground Utility Strikes
Transportation Spills & Vehicle Upsets
Improper Disposal at Treatment or Land Application Sites
Contaminated Wastewater from Cleaning Equipment

Biohazard & Pathogen Exposure from Septage

Environmental exposures are inherent in septic contractors’ operations and septage handling. Septage pumped from septic tanks includes scum, sludge, and effluent that can contain harmful biohazards, nutrient pollutants, toxic gases, and chemicals, which may cause serious health hazards and environmental damage. An accidental release can occur during pumping or repair to septic systems or cesspools or while providing or cleaning chemical toilets. Additional environmental exposure can occur during transportation, unloading, and disposal operations or from cleaning trucks and equipment. A release can contaminate soil and groundwater or collect in stormwater run-off, which can discharge into nearby bodies of water.

Nutrient Pollution (Nitrates & Algal Growth)

Septage can also contain nitrogen in the form of nitrate. During a spill or leak of septage, nitrogen can leach into ground waters or collect in stormwater run-off and wash into nearby waters, contaminating water quality. High nitrate concentrations in drinking water can cause methemoglobinemia, a potentially fatal infant disease known as blue baby syndrome. Nitrogen can also result in excessive algal growth, which can cause natural resource damage by harming ecosystems and aquatic life, including the death of fish, shellfish, and plants.

Toxic & Explosive Sewer Gases

Leaks in sewer lines may result in the migration of sewer gases into living/work areas and utility conduits. Toxic gases are produced by the natural treatment processes in septic tanks and may include hydrogen sulfide, ammonia, methane, esters, carbon monoxide, sulfur dioxide, and nitrogen oxides. Sewer gases can be highly flammable and may build up to explosive levels or cause loss of business and habitability of the building. Low-level exposure can cause many health effects, including eye and respiratory tract irritation. Exposure to high concentrations can result in loss of consciousness and death.

Damage to Septic Systems from Heavy Equipment

Using heavy equipment and pumper trucks on a property could result in driving over septic tanks, septic piping, or drain fields, damaging the septic system, and releasing contaminated septage or gases.

Underground Utility Strikes

Failure to properly locate underground utilities and pipelines may cause septic contractors to strike a line and cause leakage. Underground utilities, like gas lines, water and sewage pipes, and unknown hazards beneath the surface, such as abandoned storage tanks, can be impacted. An 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, bodily injury, and third-party property damage claims.

Transportation Spills & Vehicle Upsets

During transportation from a jobsite to a disposal facility, a spill or leak of hauled waste could occur from equipment malfunction or a vehicle upset or overturn, resulting in an environmental cleanup or tort liability. During the loading and unloading of waste, equipment not properly attached/connected could also result in a pollution release.

Improper Disposal at Treatment or Land Application Sites

Federal and state laws may regulate the disposal of collected septage and require appropriate permits. Disposal may also need approval at the facility, which may impose company dumping requirements. Septage may be disposed of in various ways, including at a wastewater treatment plant, an independent septage treatment plant, and through a land application such as fertilizer or burial in sanitary landfills. Septage waste can contain biohazards, chemicals, and other contaminants disposed of in a septic system. Improper disposal procedures, or spills and leaks while unloading at the disposal site, could seriously threaten human health and the environment, resulting in cleanup and tort liability.

Contaminated Wastewater from Cleaning Equipment

Cleaning pump tanks, trucks, equipment, and port-a-potties generate wastewater contaminated with biohazards, chemicals, bleach, and detergents. Improper collection, containment, and disposal could contaminate surrounding soils and groundwater or discharge into stormwater drains that may run directly into water bodies without treatment.

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

Defense of third-party claims

First-party emergency response costs

Sudden and accidental coverage for owned/leased locations

First and third-party transportation pollution liability

Mold, legionella, bacteria, and fungi

Loading and unloading

Non-owned disposal sites

Natural resource damage

Lead and asbestos

Silt and sedimentation

Claims Scenarios & Examples

A septic company was hired to pump out the private septic tank of a residence. After finishing the work, the truck fell through a bridge over a creek on its way back. The accident caused a valve on the back of the truck to break, and almost 3,000 gallons of raw septic waste were released into the creek. The creek, which led to a river, had to be cleaned, and nearby residents were told to avoid the creek and river until the cleanup was complete.
A business owner noticed a horrible smell from a ditch near their building and filed a complaint. The smell was found to be from raw sewage that was pumped into a storm sewer that fed into the ditch. A septic company had been rehabilitating the sewer lines in the area, and the contractor had put four truckloads, about 20,000 gallons of sewage, into the wrong manhole. They put it in the stormwater drain that led to the ditch instead of the sanitary sewer line that went to the wastewater treatment plant.
While transporting porta-potties, a sewage truck swerved to avoid a barrel that fell off another vehicle on the highway. As the truck swerved, the porta-potties flew off the truck. Although the toilets were empty, the truck’s septic tank spilled wastewater containing human feces and urine onto the road. The Department of Public Safety and the local fire department responded to the incident, and the roadway required cleanup and sanitization.
A salon had a sewage backup, and a septic contractor worked to repair the leak. However, the line spilled sewage into the salon during work, exposing the facility to fecal contamination and other hazards. The owner sued the city for not keeping the sewer line clean and the contractor for damages caused by the spill.
A three-year-old fell into a septic tank at a park and died. An autopsy confirmed that the cause of death was asphyxia after inhaling the contents inside the septic tank. The family sued two city contractors, including the septic service contractor, for negligence. The lawsuit stated that the contractors had a legal duty of care to properly inspect, maintain, repair, and service the water treatment systems and wastewater lift stations, including the park’s septic tank.
A family ran a dairy farm on their property and used a well to supply their household and the farm. They hired a septic company to apply septage, which contained human waste, to the farm for several years as fertilizer. The farm started to notice problems with their well water, and their cows began to die. They had their well water tested, and high levels of nitrates were found. Nitrates in high amounts can cause health problems in humans and animals. The dairy farm sued the septic and pumping company. The claim was denied due to the pollution exclusions in the Commercial General Liability policy.

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.

Download PDF
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