Environmental Exposures for Demolition Contractors: What Could Happen?
Demolition contractor operations go beyond construction and disposal related activities. Check out some of the potential pollution exposures these contractors face:
Demolished materials may contain potentially harmful waste
The demolition of buildings generates scrapped and waste materials. This material may contain lead based paints or asbestos insulation or asbestos containing materials such as floor or ceiling tile. Additionally, discarded fuel oil tanks can contain significant amounts of fuel oil. Releases of any of these substances can occur during onsite storage prior to disposal, or at the ultimate disposal site.
Job site pollution caused by the contractor exacerbating existing conditions
Many claims faced by demolition contractors stem from disturbing asbestos, lead, or existing mold while work is being performed. Making these conditions worse by spreading the contamination can lead to significant liability on the part of the contractor.
The operations of subcontractors for which the contractor is responsible
When demolition contractors hire subcontractors, they run the risk of being held responsible for pollution conditions stemming from this work. Obviously, the demolition contractor should require them to carry their own insurance, but the sub may not carry adequate, if any, environmental coverage.
Over the road pollution
Most demolition contractors haul away the demolished materials, some of which could contain pollutants and other hazardous materials. An accident on the highway may lead to clean up and third party losses. Coverage available through the auto policy may be limited.
Contractors’ owned premises exposures
Many demolition contractors have significant property used to store and maintain their equipment, vehicles, and offices. These facilities can range from simple warehouse space, bulk fuel storage, to small private landfills. Any property where equipment is stored runs the risk of being contaminated from pollution releases.
Professional exposures
Demolition contractors may perform operations that expose them to professional claims, including jobsite modifications, selection and supervision of subs, adhering to local codes and ordinances, etc. Contractors may be brought into claims arising from subcontracted design, construction management, and project delivery methods. It is important for contractors to consider these exposures and to consider Professional coverage to address any economic damages.
Do you have a demo contractor account you’d like to discuss? Contact us today. See more on environmental insurance for demolition contractors.
