Jet Fuel Remediation Claim Review & Cost Analysis

The Challenge

Vertex was retained by an international property and casualty insurance carrier to assist them in their investigation and review of an environmental claim submitted by their Insured involving a release of approximately 1,000-gallons of jet fuel that occurred as a result of an overfill during an aboveground storage tank (AST) refueling delivery at an airport in Massachusetts.

The Solution

In October 2024, the Insured’s fuel delivery company mistakenly delivered jet fuel to the wrong AST and as such, an overfill occurred. As a result, approximately 1,000-gallons of Jet A fuel released from the vent pipe to the ground surface. Remediation of the incident included emergency response activities such as application of absorbent material as well as free product recovery and soil excavation. Remediation activities also consisted of additional soil removal, stockpiling, and disposal as well as soil and groundwater sampling. Based on the analytical data, a soil vapor extraction (SVE) system was installed to treat residual impacted soil within the source area vadose zone and SVE operations continued until January 2026. The application of bio remedial soil additives was also conducted. In January 2026, an Immediate Response Action Completion Report and Permanent Solution Statement with No Conditions was submitted to Massachusetts Department of Environmental Protection (MassDEP) signifying regulatory closure.

Vertex was retained by the insurance carrier to complete an investigation of the loss to assist in a coverage determination. As part of the investigation, Vertex conducted a Site inspection to document the condition of the Site and ASTs as well as to document the extent of the contamination. Following completion of the investigation, Vertex was retained to review the associated remedial costs incurred by the Insured, totaling approximately $400,000, for reasonableness and necessity. Upon review, Vertex identified disputed costs related to unreasonable recovery fees, excessive per diem fees, and costs that were determined to be unrelated to the remediation of the loss.

The Outcome

Vertex was able to use our expertise and knowledge of fueling equipment to assist the insurance carrier in determining the cause, origin and timing of the loss so that the insurance carrier could determine coverage of the loss under their policy. Following completion of the investigation, Vertex conducted claim management services including coordination with the Insured’s consultant to discuss and review remedial activities as well as review associated reporting and costs. Vertex’s review and analysis resulted in cost reductions of the claimed loss amount in accordance with the Insured’s policy as well as assisting to ensure that the claim achieved regulatory closure in the most cost-effective manner.