Varied Facets of a Fire Loss

The potential hazards to human health resulting from direct exposure to fire and smoke are obvious to us all, but responsible insurance claims professionals should be aware that many other environmental, health and safety concerns don’t arise until after the fire is put out and the assessment and restoration work begins. Specifically, we must be aware of potential concerns regarding indoor air quality for safe work and future occupancy, contamination of firefighting water and resultant impacts to the environment, identification of designated substances and hazardous materials, proper waste disposal and assessment of soot migration to determine the actual extent of damages. 

Indoor air quality

With fires that affect industrial or commercial facilities, or any buildings which may have a variety of chemicals stored at the property, the potential exists for a hazardous atmosphere to be created as a result of the fire. Although such atmospheric hazards are most pronounced during and shortly following the fire, off-gassing of remaining chemical contaminants and evaporation from wet materials can result in lingering air quality impacts. In order to evaluate the level of hazard associated with the indoor atmosphere, a prudent claims professional should require that some level of indoor air quality (IAQ) assessment be completed within the subject building shortly after the scene is released by the Fire Marshall’s office, or sometimes even before, depending on the Fire Marshall’s direction. This would generally involve the use of handheld air monitoring devices to obtain real-time spot measurements of various air quality indicator parameters, such as oxygen, carbon dioxide and monoxide levels, suspended particulate matter, and total volatile organic compounds (TVOCs, among others). The IAQ assessment would confirm whether additional ventilation measures may be required, or whether there may be a contamination source that needs to be addressed (e.g. spilled chemicals) prior to restoration work proceeding or future occupancy. In addition, the IAQ assessment would assist in the determination of the appropriate level of personal protective equipment required for any personnel entering the structure during the early post-fire stage. Such IAQ monitoring can continue throughout the restoration process in order to identify when personnel protective measures can be downgraded to avoid unnecessary cost and restrictions.

Contamination of firefighting water

In instances where a potential source of contamination is known to be present or was identified on the subject property during the initial scene assessment (e.g. spilled chemicals or the remnants of chemical containers damaged by the fire), it follows that the firefighting water may also end up contaminated as a result. When this water becomes surface runoff and enters the sewer systems or flows overland onto adjacent properties, significant environmental impacts can result. Consideration should be given to the site drainage and sewer infrastructure that could be affected and the potential for off-site migration of contamination as a result of the fire and firefighting activities. Certain storm sewer systems also discharge to nearby watercourses, which could have even more pronounced effects if aquatic life is put at risk as a result. This might involve assessing the water within local catch basins for visual or olfactory evidence of contamination and/or laboratory analysis of water samples to verify concentrations of contaminants of concern in comparison with regulatory standards (e.g. sewer use by-laws). In instances where contamination is identified, further investigation may be warranted to identify the extents of contamination, particularly if the contamination has migrated off the subject property, or it may be appropriate to undertake some level of remediation (e.g. containment and offsite disposal at an approved facility of any residual contaminated water within the subject property and/or catch basins using a vacuum truck). Addressing these concerns early on would ensure that the insurance parties are doing their part to mitigate potential offsite contamination issues on behalf of the insured, and would help to appease regulatory officials (e.g. Ministry of the Environment) and demonstrate due diligence in these regards.

Designated substances and hazardous materials

Prior to any demolition or restoration activities in any Canadian province or territory, it is mandatory that the presence of hazardous materials in general (and in most jurisdictions, asbestos in particular) be identified so that appropriate safety and waste handling precautions can be taken.1-13 Generally, it is required that the regulated materials (the specific list of hazardous substances varies by jurisdiction) present within a project area be identified for the purpose of communicating the related hazards to workers and occupants in advance of construction or demolition that may disturb such materials. Commonly with older buildings, the most significant concern is the presence of asbestos, which was historically used in numerous building materials including floor tiles, window caulking, and plaster. Certain construction materials and finishes for sale are still asbestos-containing today, such as floor tiles and concrete pipes, etc. making it difficult to gauge the risk based on the age of a building alone. In all Canadian jurisdictions, there are provincial/territorial regulations, guidelines, or codes of practice pertaining to the assessment and abatement of asbestos.14-25 Some jurisdictions require written notification to the regulatory authority prior to undertaking asbestos abatement, and in most jurisdictions, the regulatory authority may conduct surprise inspections of the asbestos abatement work being undertaken. Failure to carry out the abatement work in a safe manner (e.g. in accordance with the applicable regulation, guideline, or code of practice for a given jurisdiction) could result in the demolition/restoration work being suspended (i.e. think costly construction delay) or, even worse, resulting in fines to the project owner and/or contractor. Ironically, the project owner may, in fact, be interpreted as being the adjuster or insurer given that most property owners, especially in residential situations, are unaware of these pre-restoration regulatory requirements.

Waste disposal

The various types of waste that may be generated during the demolition/restoration activities would have to be classified and handled in accordance with applicable guidelines or regulatory requirements for each jurisdiction.26-37 These regulations or guidelines may include special waste handling requirements for asbestos waste and other hazardous wastes (like leachable lead in old paint, etc.), and generally provide definitions of the various waste types and testing requirements to determine appropriate disposal measures. Claims professionals responding to a fire loss must ensure that the selected restoration contractor is properly managing wastes in accordance with the applicable regulatory requirements, including confirmation that waste haulers and waste disposal locations are appropriate and have the necessary provincial approvals, licenses and permits. The discovery that waste has been mishandled after it has already been dumped at a landfill may have costly repercussions in terms of recovering it for proper disposal.

Soot deposition and migration in structures

Soot is a product of incomplete combustion, which occurs when there is insufficient oxygen present to allow a fuel to react without producing by-products. Whereas the charred materials affected by a fire can be easily visually identified, the identification of the presence of loss-related soot on the surfaces of building materials or building contents may require closer examination. To this end, claims professionals would be wise to have a soot migration assessment undertaken in order to better under
stand the extents of the area affected by loss-related soot deposition, and to most efficiently plan restoration activities. The assessment would help to avoid unnecessary tear-out and cleaning or, even worse, to avoid missing hidden impacts that may require additional work after a claim is resolved. Such an assessment would involve the collection of surface wipe samples for microscopic analysis. When viewed under a microscope, surface samples containing soot are readily discernible from samples containing dust and other particulate matter due to the differences in particulate colour, morphology and size. In addition, laboratory testing could be conducted in order to identify the “chemical fingerprint” of the subject fire to allow for the differentiation of loss-related impacts from other impacts related to normal operations at the subject property or other pre-existing conditions. This additional testing can be pivotal in avoiding unnecessary remedial measures and costs in buildings with high background (pre-existing) soot contamination.

Summary

Though it may seem like a daunting task to effectively address these various potential environmental, health and safety concerns, an effective insurance claims professional can manage these duties easily by quickly identifying the key concerns and ensuring that the right resources are brought in early on. Experience shows a basic assessment at the outset of a loss can avoid a multitude of complications and surprise costs later on in the restoration process. _

Keith Stephen, B.A.Sc., M.Eng., P.Eng., is an environmental engineer with the forensic engineering firm Giffin Koerth Inc., and has successfully managed dozens of environmental site assessments and site remediation projects, including several for insurers.

1. Section 20.112 of BC Occupational Health and Safety Regulation

2. Sections 34 and 417 of Alberta Occupational Health and Safety Code, 2009

3. Sections 334(1) and 381(1)(a) of Saskatchewan Occupational Health and Safety Regulations, 1996

4. Section 33.4(1)(a)(ii) of Manitoba Workplace Safety and Health Regulation

5. Section 30 of Ontario Occupational Health and Safety Act and Ontario Regulation 490/09 – Designated Substances

6. Section 3.23.3.2 of Quebec Safety Code for the construction industry

7. Section 398(a) of Newfoundland and Labrador Occupational Health and Safety Regulations, 2009

8. Section 157(2) of Nova Scotia Occupational Health and Safety General Regulations

9. Section 157(2) of New Brunswick Occupational Health and Safety General Regulations

10. Section 49.10 of PEI Occupational Health and Safety Act – General Regulations

11. Section 10.56(a) of Yukon Occupational Health and Safety Regulations

12. Section 2.3 of NWT Guideline for the Management of Waste Asbestos and Section 5 of Asbestos Safety Regulations

13. Section 5 of Nunavut Asbestos Safety Regulations

14. Guideline G6.8 – Procedures for abatement of asbestos materials during house and building renovation of BC Occupational Health and Safety Regulation

15. Alberta Asbestos Abatement Manual, Oct 2012

16. Saskatchewan Guidelines for Managing Asbestos in Buildings

17. Manitoba Guideline for Working with Asbestos

18. Ontario Regulation 278/05 – Designated Substance – Asbestos on Construction Projects and in Building and Repair Operations

19. Section 3.23.7 of Quebec Safety Code for the construction industry

20. Newfoundland and Labrador Asbestos Abatement Regulations, 1998

21. Nova Scotia Code of Practice for Removal of Friable Asbestos-Containing Materials

22. Code of Practice for Working with Materials Containing Asbestos in New Brunswick

23. Section 49 of General Regulations of PEI Occupational Health and Safety Act

24. Section 34 of Yukon Occupational Health Regulations

25. NWT and Nunavut Codes of Practice for Asbestos Abatement

26. BC Regulation 63/88 – Hazardous Waste Regulation

27. Alberta Regulation 192/1996 – Waste Control Regulation

28. The Hazardous Substances and Waste Dangerous Goods Regulation for Saskatchewan

29. Manitoba Regulation 282/87 Classification Criteria for Products, Substances, and Organisms Regulation

30. Ontario Regulation 347/90 – Waste Management

31. Newfoundland and Labrador Guidance Document for Asbestos Waste Disposal and Newfoundland and Labrador Guidance Document for Leachable Toxic Waste, Testing and Disposal

32. Nova Scotia Regulation 56/95 – Dangerous Goods Management Regulation

33. New Brunswick Regulation 2008-54 – Designated Materials Regulation – Clean Environment Act

34. PEI Waste Resource Management Regulations

35. Yukon Special Waste Regulations

36. Guideline for the General Management of Hazardous Waste in NWT

37. Guideline for the General Management of Hazardous Waste in Nunavut