The Problem: A truck carrying a load of #2 diesel, which had been loaded and sent from a used oil recycler, overturned and spilled while en route to a customer, causing the highway to be closed in both directions. Two truck stops were impacted by materials from the truck and also had to be closed for several days. The truck stop owners and several truckers filed damage claims.

The Response: XL Environmental Claims retained emergency response contractors to clean up the area quickly to minimize any damage and mitigate potential for claims. In the meantime, XL Environmental interfaced with the state environmental authorities. XL Environmental Claims also managed the litigation that resulted from the truckers and truck stop owners, negotiating quick settlements to avoid protracted litigation and defense costs. The state environmental agency was pleased with the speed and thoroughness of the cleanup, filed no enforcement actions or fines, and issued a no further action letter. Total cleanup costs were less than $100,000, and settlements with 5 different claimants were also made for less than $150,000.

The trucking company’s auto liability policy endorsed with broadened auto pollution coverage responded to the costs of cleanup.

The Benefits: XL Environmental Claims’ efforts in the early stages of the incident resulted in a fast cleanup which mitigated damages, and quickly negotiated settlements resulted in significant savings of defense costs and allowed the insured to focus on its business and protect its reputation.