The Problem: An air release of a caustic substance at a manufacturing facility insured by XL Environmental caused over $1 million dollars in damages to the property of nearby businesses and residents. In particular, the release damaged the paint finish of over 800 cars. Many of the claimants also worked at the insured’s facility.

The Response: XL Environmental Claims retained the appropriate, responsible environmental consultant to investigate the cause of the problem and advise as to any cleanup necessary. The consultant determined that the cause of the problem was the failure of the pollution control equipment to function properly. XL Environmental then worked with the claimants to establish an appropriate claims handling protocol and to ensure that all were fairly compensated for the loss.

The manufacturer’s Pollution and Remediation Legal Liability (PARLL) policy, will respond to the costs of property damage and remediation expense, as well as any potential bodily injury claims and defense costs resulting from any subsequent lawsuits.

The Benefit: XL Environmental Claims’ quick response ensured that the numerous claims were effectively resolved in an appropriate manner, thereby reducing the possibility of fines and penalties by governmental authorities, inappropriate cleanup costs, and numerous lawsuits from the various property owners. Additionally, XL Environmental Claims is exploring the possibility of subrogation against the manufacturer of the pollution control device that allowed the release.