The Problem: An engineering firm insured by XL Environmental designed a pressure relief system for its client, a coal benefication plant (removes moisture from coal to make it more marketable). This multi-million dollar plant was about to open when it was discovered the system that our insured had designed was significantly undersized. Since part of the financial incentive to build the plant was a tax credit as authorized by the Clean Air Act, any resultant delay could mean the loss of millions of dollars through failure to meet the mandated deadlines.

The Response: An XL Environmental claims counsel and environmental consultant met with the insured, defense counsel and key engineers. XL Environmental analyzed coverage and reserves were in place within two weeks. XL Environmental Claims and an outside consulting firm proposed four possible solutions, one of which was agreed upon by the plant and the insured. XL Environmental Claims also credited the insured with some internal engineering costs and travel costs. The plant was up and running before the window of opportunity for tax credits closed.

The Benefit:

• Satisfied insured – The error was quickly resolved so that their client’s business could carry on.
• Satisfied claimant – Swift response and expert engineering and legal advice protected their bottom line.