Detroit’s aggressive demolition program has stumbled. Investigators discovered that hundreds of razed‑home sites were backfilled with contaminated soil laden with lead, asbestos, mercury, cadmium and polycyclic aromatic hydrocarbons. The city’s inspector general flagged the issue earlier this year and the news has sparked an environmental scandal just as Mayor Mike Duggan leaves office.
Key Facts
- Scale and detection – Independent experts estimate that up to 424 demolition sites were filled with tainted dirt. Early testing showed that about one‑third of the first 50 sites sampled had contaminant levels above regional backgrounds. Officials admit that dozens of sites need remediation and have pledged to replace the toxic soil.
- Investigations and liability – Police and regulators are investigating whether contractors falsified soil‑sourcing documents. State environmental officials are also looking into the supplier that was supposed to deliver clean fill. Cleaning each site may cost nearly as much as demolishing a house, and the city plans to seek reimbursement from negligent contractors.
- Health implications – Lead and asbestos pose serious long‑term health risks. Experts warn that residents could be exposed when contaminated soil is disturbed. The situation underscores that pollutants are dangerous even at low concentrations.
Why It Matters for Business Owners
Businesses involved in construction, demolition or property ownership face several lessons:
- Materials can carry hidden risks – Contaminated fill or untested materials can leave owners liable for cleanups and health claims. Due diligence on suppliers and documentation is critical.
- Regulatory and criminal exposure – When environmental rules are ignored, civil penalties and criminal charges are possible. Recent indictments for asbestos abatement violations in Missouri show prosecutors are willing to pursue charges.
- Reputational damage – Discovery of contamination halts projects and erodes trust with clients and communities.
Pollution Liability Insurance
Standard liability policies often exclude pollution events. Specialized coverage for contractors can help manage risks:
Coverage
- Bodily injury/property damage: Pays claims from pollutants released during projects or afterward.
- Cleanup costs: Covers mandated remediation expenses, which in Detroit could match demolition costs.
- Legal defense: Provides funds to respond to lawsuits or enforcement.
- Transportation/disposal: Protects against liability when hauling or dumping materials.
- Mold/indoor air quality (optional)Some policies extend to mold or bacteria claims.
Best Practices
- Vet suppliers and document origins of materials. Require environmental testing and keep records.
- Train staff on environmental compliance. Know when materials like paint, flooring and soil require testing or abatement.
- Review contracts and insurance. Clarify environmental responsibilities and ensure appropriate pollution coverage.