Contractors that perform installation, maintenance, repairs, or testing related to sewer and water piping can face many environmental risks. Exposure to environmental liability can result from various activities, including on-site operations, equipment use and maintenance, and transportation and disposal practices. Earthwork activities such as excavation, trenching, tunneling, and boring can disturb soil contamination, damage subsurface utilities or tanks, and lead to erosion of silt and sediment. Handling, transportation, and disposal of jobsite waste, including hazardous chemicals, contaminated soil, wastewater, and sludge, can also create environmental liability.
During excavation for new utility trenches, failure to properly locate underground utilities, such as gas lines, water, and sewage pipes, or unknown hazards, such as abandoned storage tanks and septic tanks, could result in a release of fuel oil, chemicals, toxic gases or sewage that causes contamination or impacts third parties.
Soils excavated for new water and sewer lines may have known or unknown pre-existing contamination. Contaminated soil could be collected and spread to clean areas of a site. Stormwater coming in contact with contaminated soil stockpiles that are not properly tarped or contained can spread contaminants. Contaminated dust can also generate hazardous air emissions that impact third parties and even enter building HVAC systems.
Silt and sediment are fine-grained soil particles that can migrate in run-off due to a rain event, accidental water pipe break, or excessive watering for dust suppression. During construction activities for utility trenches, bare ground, and exposed earth is vulnerable to erosion by wind and water. Inadequate erosion controls can lead to surface run-off of these soil particles, impairing the proper functioning of stormwater drainage systems, causing ecological damage to streams and rivers, and causing adjacent property damage. Control of silts/sediments is required under the Clean Water Act, and contractors may face regulatory action such as cleanup orders or fines and penalties from federal, state, or local regulators.
Dewatering activities for utility work could spread pollutants when water is discharged or pumped to storm sewer inlets or surface waters. Untreated water from construction dewatering operations may contain sediment or other pollutants found on-site from current or past land use.
Excavation, directional boring, and other subsurface intrusions can disturb the soil and possibly penetrate an aquifer. This may result in creating pathways for contaminants in the soil to migrate off-site or to contaminate groundwater or surface water.
Trench backfilling may damage underground pipes, resulting in perforations that can release contaminants. When backfilling a utility trench, rocks in the backfill or pipe placement on jagged edges can damage the line.
Contaminated groundwater or surface water can seep into water piping due to work performed by a sewer/water contractor. Causes may include leaking or improperly seated isolation valves, improperly installed adapters, malfunctioning backflow prevention devices, generated transitory pressures, etc. Inadequate flushing and sanitizing can allow microbial growth.
Contractors who install cured-in-place pipes to reline compromised sewer lines may incur environmental liability due to odors and emissions generated by this work. Steam used to harden resin used in the installation releases a mixture of particulates of partially hardened resin and organic compounds, including styrene, methylene chloride, and dibutyl phthalate. Third parties can be exposed to emissions and become ill. Bodily injury suits can result.
Heavy and powered equipment on a jobsite may release fuels, oils, and fluids, either accidentally or from vandalism, discharging pollutants into the soil and groundwater and requiring cleanup. Similar exposures can occur during the storage or maintenance of equipment at the contractor’s owned facility
A release of chemicals, contaminated soil, fuel, or fluids could occur during transportation to and from a jobsite or during loading and unloading operations. Releases of contaminated wastes and wastewater during transport to a disposal facility can also create environmental exposure.
Installation and repair work can inadvertently disturb existing pollutants, such as asbestos, lead, mercury, and PCBs, in structures, piping, and equipment. This work can result in the release of inhalable particulates into the air that can harm nearby third parties or leaks that can cause contamination, resulting in environmental cleanup and tort liability.
Wastes collected from a jobsite, such as soil, wastewater, sewer debris, sludge, and old discarded materials, may contain hazardous materials. These wastes may require special disposal or recycling procedures. Improper disposal or misdelivery of unidentified contaminated material can contaminate a landfill or non-owned disposal facility, resulting in claims for environmental cleanup and tort liability.
Equipment washout and decontamination water can contain toxic materials and be caustic and corrosive. Improper washouts from cleaning mobile equipment, pumps, hoses, and drill rods can leach into soil and groundwater or migrate off-site and into storm drains that discharge surface waters and harm natural resources and aquatic life.
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
Natural resource damage
Sudden and accidental coverage for owned/leased location
First and third-party transportation pollution liability
Loading and unloading
First-party emergency response costs
Mold, legionella, bacteria, and fungi
Lead and asbestos
Silt and sedimentation
Non-owned disposal sites
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.