Acknowledgement to XL Environmental
THE CLAIM
An XL insured facility manufactured medical diagnostic and scientific instruments for more than 50 years. Our insured was consolidating its operations and moving the facility to another of their locations. Our insured conducted a Phase I Environmental Site Assessment on the property in anticipation of selling the property. A Phase II Environmental Site Assessment was conducted to investigate those areas of concern noted in the Phase I Site Assessment.
The insured conducted a soil and gas survey as part of the Phase II investigation and reported to XL that both perchloroethylene (PCE) and trichloroethylene (TCE) were detected at concentrations exceeding state health screening standards.
THE RESPONSE
It was determined that the PCE source was from a former degreaser and the TCE source was from plating operations. Both PCE and TCE were found to be in shallow and deep groundwater. XL’s environmental claims counsel and a technical consultant worked with the insured to retain a third party remediation consultant to devise and implement an approved remediation strategy. XL retained defense counsel to assist the insured with its interactions with regulators.
THE SOLUTION
Estimated costs to remediate the site were $3,000,000, which were reserved to pay for remediation costs under the insured’s Pollution and Remediation Legal Liability Policy.