The Problem: The owner of a warehouse was sued under the Superfund laws for soil and groundwater contamination beneath its site. The contamination was the result of historical operations at the site before the owner constructed and occupied the warehouse. Due to its knowledge of the contamination, the warehouse owner is not considered an "innocent landowner," under the statute.

The Response: XL Environmental Claims assisted the insured in the retention of an experienced environmental attorney to defend the claim. Through its extensive experience in managing claims of this nature, XL Environmental Claims worked closely with the insured to develop and implement a successful, cost-effective litigation strategy, and to retain appropriate environmental experts to defend against any claims that the warehouse operations are contributing to the contamination.

The property owner's Pollution and Remediation Legal Liability (PARLL) policy will respond to the costs of the defense, including the retention of appropriate environmental experts to assist in defending the case. Costs are expected to range from $75,000 to as much as $500,000 if the case proceeds to trial.

The Benefit: XL Environmental Claim's experience in managing environmental claims, and knowledge of experienced defense counsel and qualified environmental experts, led to the development of an effective litigation strategy and assisted the insured in understanding the issues and being fully involved in the defense of this claim.