Error in Cap Testing Data Submitted to Regulators

Acknowledgement to XL Environmental

THE CLAIM
An XL insured environmental consultant provided landfill closure services to a landfill client. The insured’s services included certification to authorities of the moisture content of the soils used in the landfill cover. Incorrect cap testing data was inadvertently used in the insured’s closure certification to state authorities. This error resulted in the insured certifying to state authorities that the state’s standards were met, when they had not been met. The insured’s client sued the insured, alleging that as a result of the insured’s acts, errors and omissions in its professional services, a Notice of Violation from the state was issued and increased regulatory scrutiny of the client resulted in increased closure costs.

THE RESPONSE
XL’s environmental claims counsel worked closely with the insured to assess the allegations and claimed damages. XL retained local defense counsel to defend the insured in the litigation. XL’s investigation revealed that the insured’s client could likely establish $500,000 in damages as a result of the error.

THE SOLUTION
Defense counsel and the insured attended arbitration with the insured’s landfill client, resulting in an early, favorable settlement for our insured. XL paid $270,000 on the insured’s behalf under the insured’s Professional and Contractor’s Pollution Legal Liability Policy to resolve the claim.

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