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, pertaining to a chemical reaction which resulted in emergency response activities at an industrial facility located in Leland, North Carolina.
In late June 2024, a severe thunderstorm impacted the area and resulted in a portion of metal roofing detaching from the industrial facility. Precipitation then entered the structure and impacted an estimated 10,000 pounds of trichloroisocyanuric acid (TCCA), commonly referred to as pool shock, which resulted in off-gassing of chlorine gas. Emergency response crews along with federal, state and locate regulatory agencies responded to the incident which required an unspecified number of nearby residences to be evacuated. The trichloroisocyanuric acid was dried to stop the chemical reaction, before it was mixed with gypsum to neutralize the chemicals.
VERTEX was asked by the carrier to review incurred invoices and cost proposals submitted by the insured. VERTEX disputed costs associated with the original environmental consultant mobilizing from Nashville, Tennessee as being excessive since there were multiple environmental consultants located near the site. Additionally, both the insured and carrier had questions after the environmental consultant wanted to transport the waste to Idaho for disposal. VERTEX assisted the insured with acquiring a second disposal estimate based on the unique nature of the impacts. While the second estimate was comparable to the original estimate, the estimate confirmed that a closer disposal facility was not available and that the original cost estimate was reasonable. Total remediation and disposal costs are currently not anticipated to exceed $300,000.
VERTEX was able to utilize our experience with comparable claims in the area to assist the insured in acquiring a second cost estimate which provided the insured with peace of mind knowing that the estimated costs were reasonable and that the neutralized material could not be disposed of at a local disposal facility.
VERTEX has a dedicated team of experts specializing in forensic environmental investigations and remediation.
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