The Hidden Risks of Building Envelope Work: Why Pollution Liability is a Must-Have

Building envelope work often involves the use of materials that can release pollutants into the environment. Sealants, adhesives, and coatings used in these projects may contain volatile organic compounds (VOCs) or other hazardous substances that can contaminate the air, soil, or water if not handled properly.

Additionally, many older buildings contain asbestos, a known carcinogen that was commonly used in construction materials like insulation, flooring, and roofing. Disturbing these asbestos-containing materials during building envelope renovations or repairs can release asbestos fibers into the air, posing serious health risks to workers and occupants if proper safety measures are not followed.

How Building Envelope Projects Can Lead to Pollution Claims

One of the biggest risks in building envelope work is the potential for pollutants to be released, leading to bodily injury or property damage claims. A prime example is a lawsuit faced by a general contractor where a tenant claimed she inhaled silica dust during an exterior renovation project on her high-rise building. The tenant alleged this exposure caused her to be hospitalized and forced to move out of her unit.

Even when following proper protocols, building envelope projects can inadvertently result in the release of hazardous materials into the air, soil or water systems. Sealants, adhesives and coatings used in this work often contain volatile organic compounds (VOCs) that can leach into the surrounding environment if not properly contained. Disturbing legacy building materials like asbestos or lead-based paints also creates pollution risks. Something as seemingly minor as exterior power washing can potentially cause surface contaminants to runoff into storm drains or seep into groundwater.

How Building Envelope Projects Can Lead to Pollution Claims

A recent lawsuit highlights the pollution risks involved in building envelope work. A tenant sued a general contractor, claiming she had inhaled silica dust during an exterior renovation project at her high-rise residential building. The tenant alleged that dust from the construction work entered her basement unit through a fan she had running, causing her to suffer silica exposure and requiring hospitalization.

The consequences were severe - the tenant not only faced potential long-term health impacts from the silica exposure, but also had to temporarily vacate her home during the project due to the dust infiltration. Beyond the personal impacts, the contractor is now embroiled in lengthy and costly litigation to defend against the tenant's claims of bodily injury.

Pollution incidents like this can stem from common construction materials used in building envelope work. Sealants, coatings, and adhesives often contain hazardous chemicals that can be released as dust or vapours during application, posing inhalation risks. Even materials considered non-hazardous can lead to property damage claims if they unintentionally migrate and cause damage. The risks are widespread given how much of this work involves disturbing and removing existing building materials that may contain pollutants like asbestos.

The financial costs of defending against and paying out on pollution claims can be staggering for contractors. This single incident has already forced the contractor into an expensive legal battle, and they could potentially face damages for the tenant's medical costs, temporary relocation costs, property damage, and more if found liable. Pollution claims have the potential to devastate an unprepared contractor's finances and reputation.

What Does Pollution Liability Insurance Cover?

Pollution liability insurance is designed to protect businesses from third-party claims arising from the gradual or sudden release of pollutants. This coverage extends beyond just catastrophic events to include gradual leaks, spills, or exposure over time.

One of the key benefits of pollution liability insurance is that it covers third-party claims for bodily injury or property damage caused by the release of pollutants. For example, if a tenant or passerby becomes ill due to exposure to hazardous materials from a building envelope project, this insurance would cover the costs associated with their medical treatment and any legal claims they may file.

Additionally, pollution liability insurance covers the costs of cleaning up any environmental contamination caused by the release of pollutants. This can include the expenses of hiring environmental remediation specialists, disposing of contaminated materials, and restoring the affected area to its pre-incident condition.

It's important to note that pollution liability insurance covers both sudden and gradual releases of pollutants. This is particularly relevant for building envelope work, where materials like sealants, adhesives, and coatings can gradually leach into the surrounding environment, potentially leading to long-term exposure and claims.

Don't Get Caught Off Guard - The Importance of Pollution Liability

The reality is that building envelope work carries inherent environmental risks that are often overlooked. From hazardous materials like asbestos to fumes and dust released during the application of sealants and coatings, there are many potential pathways for pollutants to cause bodily injury or property damage. And in our litigious society, even a seemingly minor event can spiral into an expensive legal claim.

The modest annual premium for pollution liability insurance provides invaluable protection against these exposures. It safeguards your company from costly third-party claims for bodily injury, property damage, and environmental cleanup - even if the release was gradual over time rather than a sudden discharge. When you consider the potential six-figure costs of defending a pollution claim, this coverage is an affordable backstop that no building envelope contractor should overlook.

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Reach out to our team today to discuss Pollution Liability options.

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