Acknowledgement to XL Environmental
THE CLAIM
Solvent contamination was discovered in the groundwater at an industrial park where an XL insured’s adhesive facility had closed and ceased operations. The insured facility had operated a hot metal adhesives plant at that location. A claim was made by the state’s Department of Environmental Protection “DEP” for impact to the local groundwater from the insured’s former operations. Five lawsuits were also filed against the insured from various residents and property owners alleging bodily injury and property damage. The DEP investigations revealed a groundwater plume over 2 miles in diameter which impacted private wells at more than 100 nearby homes.
THE RESPONSE
XL’s environmental claims counsel retained local defense counsel to defend the insured. Third party experts were retained on the insured’s behalf to evaluate the claims made. As a result of that investigation, a determination was made that a regional groundwater contamination issue existed as other contamination sources in or near the industrial park were identified.
THE SOLUTION
XL paid $17,000,000 under our insured’s Pollution and Remediation Legal Liability Policy to resolve the claims made for our insured.