An XL-insured petrochemical pipeline, carrying highly flammable liquefied gases, occupied the same right of way pipeline corridor as another major chemical firm (Company B). Company B’s pipeline ruptured and the ensuing explosion damaged the insured’s pipeline, creating soil contamination and airborne exposures. Resulting third-party bodily injury and property damage lawsuits were filed against our insured in excess of $20,000,000.
XL’s environmental claims counsel and a technical consultant handled the claim for our insured. Local defense counsel was retained to represent and defend our insured’s interests. A collaborative defense investigation revealed the root cause of the failure was solely due to corrosion damage to Company B’s pipeline.
Our insured’s Pollution and Remediation Legal Liability Policy responded to resolve the pollution release claims made against our insured. XL also helped our insured recover its first-party remediation costs from Company B.