Environmental Exposures

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http://www.ecsinc.com/uw/inter_uw/exp/resident.htm

ENVIRONMENTAL EXPOSURES CAN HAVE A CATASTROPHIC IMPACT ON RESIDENTIAL

CONTRACTORS...

....Fortunately, There’s Coverage You Can Count On

Liabilities associated with environmental exposures can devastate a

business. ECS Underwriting covers residential contractors, protecting

against financial losses that can strip a business of its profitability.

Case Studies Involving Residential Contractors

In the following case histories, the environmental exposures take a variety

of forms. These examples demonstrate just some of the many ways in which

residential contractors can incur environmental liabilities.

Toxic Vapor Inhalation

A residential contractor was reconditioning a tile floor in a building

undergoing extensive renovations. Several workers in the building filed

bodily injury claims totaling $25,000 against the contractor. The workers

had inhaled toxic vapors from the sealants used in the reconditioning

process.

Fungus Infects Patients

A residential contractor removed ductwork from a hospital’s HVAC system. It

was later determined that the ductwork was home to a dangerous fungus. The

dismantling activities and the on-site storage of dismantled ductwork caused

the fungus to spread into the hospital. Patients became infected with the

fungus; some were even critically infected. The contractor was found liable

for the spread of the fungus and faced bodily injury and property damage

claims in excess of $ 1 million.

Costly Claim

A residential contractor used solvent to remove paint from a residential

structure and improperly disposed of the materials on-site. A group of

residents filed a $10 million toxic vapor inhalation suit against the

contractor, citing bodily injury, trespass of pollutants and adverse effects

to their quality of life.

Deadly Fumes

A residential contractor disposed of sealants and solvents containing

toluene in a covered, enclosed dumpster after performing routine finish

work. Acting like a confined space, the dumpster trapped the toluene fumes.

These fumes depleted the oxygen levels in the dumpster. After climbing into

the dumpster for unknown reasons, two 10-year-old children were overcome by

fumes and died. The contractor faced a claim in excess of $2 million for

inadequate disposal of the waste toluene.

That Sinking Feeling

A residential contractor developed a subdivison. Small sinkholes began to

appear in the development, soon giving up all kinds of debris. Residents

feared that the debris could extend underneath some of the homes. Homeowners

filed a lawsuit against the contractor/developer. Because the contractor

could not identify the owner of the debris, they were forced to clean it up

at a cost exceeding $1 million.

Raw Sewage Contaminates Wells

A residential contractor was subject to defense costs exceeding $25,000, in

addition to property damage and bodily injury claims exceeding $400,000 from

a residential community. During sewage installation, a subcontractor

improperly tied in piping. This caused raw sewage to migrate into the

underlying groundwater and contaminate residential wells.

Contaminated Soil

A residential contractor unknowingly spread petroleum contaminated soil

across a project site during fill operations for a housing project. The

contractor was named in a lawsuit for exacerbating the extent of

contamination. After lengthy deliberations, the contractor spent $250,000 in

cleanup costs and his defense.

The examples above are intended to illustrate the wide variety of

environmental exposures faced by institutions, business and industry and the

many ways in which those exposures can arise. Insurance coverage in any

particular case will depend upon the type of policy in effect, the terms,

conditions and exclusions in any such policy and the facts of each unique

situation. No representation is made that any specific insurance coverage

would apply in the above examples. Please refer to the individual policy

forms for specific coverage details.

COMMON ENVIRONMENTAL EXPOSURES FOR RESIDENTIAL CONTRACTORS

Operational Exposures

Fumes, emissions and spills from chemicals applied during construction

(finishers, sealants, adhesives, solvents, curing compounds, etc.)

Heating, ventilation, air conditioning (HVAC) construction or maintenance

errors causing release of airborne bacteria or carbon monoxide build up

Incidental exposure from asbestos-containing building materials

Disturbance of naturally occurring asbestos

Disturbance of lead paint

Lubricant oils and other fluids from field equipment

Release of oils/fuels as a result of vandalism

Site preparation/excavation work through pre-existing contaminated soil

(e.g., residual lead or petroleum contamination from fuels)

Spills and application of asphalt from site operations

Releases from mobile fuel tanks

Impacting underground utility lines and other underground structures (and

associated loss of business exposure)

Fluid discharge from large equipment

Owned Premises Exposures (batch plants, maintenance shops, quarries, etc.)

Leaking underground/aboveground storage tanks

Residual contamination from minor spills of oils, fuel, lubricants, etc.,

and poor housekeeping

Surface contamination from fuels and lubricants stored improperly (without

secondary containment)

Improper disposal of waste materials (sealants, finishers, etc.)

Unidentified, pre-existing contamination from past owners of the premises

Transportation Exposures

Inadvertent transport and subsequent disposal of unknown contaminated soil

Spills of asphaltic cement during transport

Resulting pollution from collisions with various structures (e.g., pole

mounted transformers, aboveground tanks, etc.)

Fuel/oil spills/leaks from vandalism

This list is intended only to outline some typical environmental exposures

common to residential contractors and is not all-encompassing.