Leaking UST Causes Hydrocarbon Contamination

Acknowledgement to XL Environmental

A potential buyer of an XL insured’s property conducted a due diligence investigation, revealing several areas of hydrocarbon contamination in the soil. Based on these conditions, the sale of the property fell through. Subsequently, a geophysical survey identified the existence of a previously unknown, leaking underground storage tank (UST) at the location.

With the approval of XL’s environmental claims department, the insured contracted to have the UST and impacted soil removed. The state regulatory agency required a corrective action plan, which was completed by a third party environmental consultant. XL’s environmental claims counsel reviewed site documentation and monitored site activities throughout the claim process.

The insured’s Pollution and Remediation Legal Liability Policy paid $400,000 for all costs and expenses associated with the remediation. XL’s claims counsel worked with the insured to ensure the remediation response was comprehensive and the costs were reasonable.

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