Golf courses confront environmental liability every day, whether known or not.
Specifically, most golf courses face environmental exposures in three major areas:
on-site operations, transportation of supplies, and disposal of waste. Each area must be
explored to identify risks that may expose the organization to environmental liability.
On-Site Environmental Risks
One of the biggest operational risks at golf courses involves
chemical spills or leaks resulting from herbicide and pesticide storage and use. In
fact, a recent review of the book of insureds at RT Specialty's Environmental and
Construction Professional Practice between 2020–2021 found that chemical spills were
the leading cause of pollution legal liability insurance claims among golf course
policies purchased. This was closely followed by COVID-19 shutdowns and incidents
involving contractors uncovering or inadvertently hitting existing structures like
utility lines, storage tanks, and so forth.
Other risks that can expose golf courses to environmental liability include the following.
Liability arising from soil and groundwater contamination
Remediation, including the cleanup of neighboring properties (off-site) and
owned property (on-site)
Lack of adequate stormwater management protocol, resulting in exacerbation of contamination
Inadequate or improper waste/sludge handling and storage practices, leading to on- and off-site contamination
Runoff from fertilizer or pesticide/herbicide application
Exposure to pool chemicals used for maintenance of swimming pools
Air emissions or odors arising from the use of herbicides and pesticides
Liability arising both on- and off-site from
aboveground and underground storage tanks, spills, residual
contamination from small leaks, etc.
Leaking storage tanks filled with chemicals,
pesticides, and fuels
Fertilizer spills or release
Malfunction of sprinkler systems resulting in large pools of still water
Diminution in value of neighboring properties due to soil and groundwater contamination
Corrosion of piping systems, leading to underground release of wastewater, etc.
Release of waste from ponds or impoundments, causing contamination
Natural resource damages, resulting in substantial costs for federally or
state-mandated cleanup requirements and potential fines
Contaminated historic fill associated with bunkers and excavation activities
Poor indoor air quality from improper HVAC maintenance/operation leading to
mold/microbial matter growth inside the clubhouse
Legionella pneumophila exposure resulting from the improper
maintenance of hot tubs and steam rooms inside the clubhouse
Legionella pneumophila exposure resulting from the improper
maintenance of swimming pools
Air emissions or odors arising from chemicals associated with pool maintenance and cleaning
Inadvertent transportation and subsequent disposal of unknown contaminated
sludge in soil
Spills of contents (e.g., fuel, product, equipment, maintenance fluids,
pesticides, or herbicides) during transport
Cleanup costs for material spilled or released while being transported or while being loaded or unloaded, whether by automobile, rolling stock, watercraft, or aircraft
Cleanup and liability associated with the disposal of waste/materials at
disposal facilities or recyclers, which may expose the organization to Superfund
liability
Wastewater lagoon and impoundment overflow due to heavy rains, causing on-
and off-site contamination resulting from contaminated flood waters
Cleanup for waste that causes a pollution condition at a licensed nonowned
disposal site
Dump or refuse area causing soil and groundwater contamination
Property-Related Environmental Risks
Another area of environmental exposure for golf courses is with
the property itself. Many golf courses have operated on the same premises for over
50, 75, or 100 years. Past improper disposal practices of waste materials may have
caused adverse soil and groundwater conditions on-site and to neighboring properties
without even realizing.
Furthermore, in many instances, there may be poor or inadequate
records of activity on the property with potential environmental problems if not
properly assessed, and the problems may only be identified when the property is
developed or possession is transferred from one entity to another. Even if
environmental assessments are performed, especially during Phase I, they are usually
only cursory reviews of the property with a "walk-through" of the property to
physically identify issues. In the event there was illegal or "midnight" dumping of
waste, environmental reports may not identify it.
Property contamination from historical usage is real, and unless a
process to vet such properties are in place, owners are exposing themselves to
big-time headaches!
Opinions expressed in Expert Commentary articles are those of the author and are not necessarily held by the author's employer or IRMI. Expert Commentary articles and other IRMI Online content do not purport to provide legal, accounting, or other professional advice or opinion. If such advice is needed, consult with your attorney, accountant, or other qualified adviser.
Golf courses confront environmental liability every day, whether known or not. Specifically, most golf courses face environmental exposures in three major areas: on-site operations, transportation of supplies, and disposal of waste. Each area must be explored to identify risks that may expose the organization to environmental liability.
On-Site Environmental Risks
One of the biggest operational risks at golf courses involves chemical spills or leaks resulting from herbicide and pesticide storage and use. In fact, a recent review of the book of insureds at RT Specialty's Environmental and Construction Professional Practice between 2020–2021 found that chemical spills were the leading cause of pollution legal liability insurance claims among golf course policies purchased. This was closely followed by COVID-19 shutdowns and incidents involving contractors uncovering or inadvertently hitting existing structures like utility lines, storage tanks, and so forth.
Other risks that can expose golf courses to environmental liability include the following.
Property-Related Environmental Risks
Another area of environmental exposure for golf courses is with the property itself. Many golf courses have operated on the same premises for over 50, 75, or 100 years. Past improper disposal practices of waste materials may have caused adverse soil and groundwater conditions on-site and to neighboring properties without even realizing.
Furthermore, in many instances, there may be poor or inadequate records of activity on the property with potential environmental problems if not properly assessed, and the problems may only be identified when the property is developed or possession is transferred from one entity to another. Even if environmental assessments are performed, especially during Phase I, they are usually only cursory reviews of the property with a "walk-through" of the property to physically identify issues. In the event there was illegal or "midnight" dumping of waste, environmental reports may not identify it.
Property contamination from historical usage is real, and unless a process to vet such properties are in place, owners are exposing themselves to big-time headaches!
Opinions expressed in Expert Commentary articles are those of the author and are not necessarily held by the author's employer or IRMI. Expert Commentary articles and other IRMI Online content do not purport to provide legal, accounting, or other professional advice or opinion. If such advice is needed, consult with your attorney, accountant, or other qualified adviser.