VERTEX was retained by an international property and casualty insurance carrier to assist them in their review of a claim submitted by an insured pursuant to an environmental pollution insurance policy, pertaining to a chemical production facility in Batavia, Illinois. Site operations consist of manufacturing printing materials such as inks and pressroom chemicals.
In March 2024, the Insured discovered water inside an electrical box which resulted in a fault in the onsite fire suppression system. When the fault occurred, approximately 700 gallons of aqueous fire-fighting foam (AFFF) were released on the Site. The discharge was contained to an onsite retention basin; however, the retention basin valve malfunctioned leading to the discharge of AFFF-contaminated water into the storm sewer system. Absorbent booms were placed in a nearby creek and the retention basin outlet was blocked off. Approximately 168,000-gallons of AFFF-contaminated water was recovered from the retention basin, storm drains, and overland runoff. Within months, over $700,000 in remedial costs were incurred to address the release.
VERTEX’s review of the available data concluded that the primary contamination driver for continued remediation would be PFAS constituents. Based on VERTEX’s analysis and conclusions, coverage was not provided by the carrier as the policy contained an exclusion for remediation of environmental impacts related to PFAS. Remediation of the impacts could potentially cost several million dollars.
Photo source: tricitiescentral.com
Photo source: bataviail.gov
To learn more about VERTEX’s Environmental Claims Consulting services or to speak with an Environmental Claims Expert, call 888.298.5162 or submit an inquiry.
