The Problem: A major retail chain insured by XL Environmental was spearheading an effort to redevelop part of an old landfill, which had been operational in the 1940s and 1950s, into a mixed-use commercial office/retail site. The site was ideally located near an airport in an urban area. The retailer had purchased XL Environmental’s Remediation Stop Loss policy to cover any cost overruns. The redevelopment involved excavating the entire property to the watertable (15 feet) and segregating the materials to be used as fill from those to be transported off-site as waste. Historical studies of the site indicated the project was manageable since contamination volumes were known. Between the time the project was planned and its inception, however, the state of Florida changed its analytical requirements for pesticides, which meant that a more sensitive remedial procedure was required. As a result of the new procedure, all sampling on the site revealed there was a widespread, low-level pesticide problem. Taking material off-site for disposal would now cost millions of dollars.

The Response: Working with the insured and state regulatory agency, XL Environmental Claims Administrators helped create a plan to establish engineering controls on-site that would allow the materials to be incorporated into the planned fill for the building. Without Remediation Stop Loss protection, there would have been no site development. Without XL Environmental Claims’ regulatory relationship, the discovery of the pesticides could have derailed the project or increased costs, or the situation may have resulted in spiraling legal and engineering costs, an expensive change order and potential litigation.

The Benefits:

• Regulatory expertise of XL Environmental Claims ensures continuation of the retailer’s project.
• No increase in project costs.
• Amicable resolution -- no litigation.