Lead Contamination from Battery Manufacturing Plant

Acknowledgement to XL Environmental

THE CLAIM
An XL insured, a battery manufacturing plant, closed its operations after operating at a property for 50 years. Buildings on the insured’s site were demolished and lead soil remediation was completed. Subsequently, while preparing their property for sale, an adjacent property owner discovered lead contamination. The highest soil concentrations were found to be along their property line adjacent to our insured’s property. The adjacent property owner filed suit, alleging lead contamination on their property was the result of the insured’s heavy use of lead and generation of lead emissions, demolition of the buildings on the insured’s property and the subsequent remediation activities.

THE RESPONSE
XL’s environmental claims counsel retained local defense counsel to represent and defend our insured’s interests. An investigation by the defense counsel discovered that lead did not appear to be a historic issue for operations on the claimant’s site and the likely source of lead contamination was from the historic use at the insured’s site.

THE SOLUTION
The insured’s Pollution and Remediation Legal Liability Policy paid $585,000 in a settlement for the costs and expenses associated with the defense and remediation of the adjacent property. Settlement of the claim helped to preserve the insured’s policy limits.

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