VERTEX was retained by an international property and casualty insurance carrier to assist them in their review of claimed damages for remediation costs submitted by an insured pursuant to an environmental/pollution insurance policy, related to the release of technologically enhanced naturally occurring radioactive material (TENORM) water at an oil production well located near Watford City, North Dakota.
In June 2019, lightning struck an above ground storage tank (AST) battery consisting of four (4) fiberglass ASTs. The lightning strike caused the TENORM water stored in the ASTs to ignite which resulted in the destruction of the ASTs and the release of an estimated 67,000 gallons of TENORM water. Remediation of the incident included the excavation of impacted soils on the Site and the adjacent agricultural area.
VERTEX was asked by the carrier to complete an inspection of the Site to document the extent of contamination and to review incurred damages/invoicing submitted by the Insured, totaling $547,496.60, for reasonableness and necessity. Upon review, VERTEX identified $72,998.30 in disputed costs related primarily to unsupported costs, costs related to removal of damaged equipment, and to repair damaged equipment. These activities were not considered by VERTEX to be necessary for remediation of environmental impacts from the release, for which the Insured’s policy provided coverage. VERTEX found $474,498.30 to be reasonable and necessary for the remediation of the subject loss. As such, VERTEX’s analysis and findings resulted in the carrier’s reduction of the claimed loss amount, in accordance with applicable provisions of the Insured’s policy, by a significant amount (approximately 13%).
VERTEX helps insurance carriers and insureds navigate complex environmental claims through expert site inspections and cost reviews. Contact us today to ensure accurate, defensible outcomes.
