Acknowledgement to XL Environmental
THE CLAIM
An XL insured chemical blending and distribution facility experienced a fire and explosion. The fire originated from the packaging area of the plant and occurred as an operator was filling a steel tote tank with ethyl acetate. The cause of the fire was a static electrical spark resulting from inadequate electrical bonding and grounding. In addition to the damage to the facility, an adjacent property owner made a claim against our insured for third party property damage and business interruption.
THE RESPONSE
XL’s environmental claims counsel and a technical consultant worked with the insured to handle the immediate on-site remediation activities. Local defense counsel was retained to represent our insured. Experienced environmental remediation consultants/contractors were retained to respond to the on-site remediation, air monitoring and third party off-site remediation.
XL also helped the insured assess its other facilities for the same issue and retained a third party consultant who issued recommendations to the insured in an effort to help prevent a similar occurrence at another location.
THE SOLUTION
Our insured’s Pollution and Remediation Legal Liability Policy paid $550,000 to resolve this pollution release. The insured also implemented the third party consultant’s recommendations for its other facilities.