The Problem: A laboratory insured by XL Environmental routinely tested barge loads of heating oil for shipment to various distribution terminals. In order to be certified for shipment, the oil needed to be deemed a specific grade and weight. When one of the terminals received numerous claims from homeowners after the oil had been delivered as home heating oil, the terminal blamed XL Environmental’s insured, claiming that the oil had not met specifications, which caused home heating units to stop working, in turn causing home damage from bust water pipes.

The Response: XL Environmental immediately sent in experienced technical consultants to examine both the laboratory’s testing procedures and the terminal’s operations. Through this expert evaluation, XL Environmental was able to demonstrate that the laboratory’s testing of the oil had been valid. Instead, the problem had occurred after the oil had been delivered to the terminal, when it was inadvertently contaminated during a poor co-mingling procedure with another batch of oil.

The Benefits: XL Environmental’s immediate response, thorough investigation of the claim and industry expertise ensured a favorable outcome for the insured. They were cleared of any liability and able to avoid costly litigation or disruption of business.