VERTEX was retained by an national property and casualty insurance carrier to assist them in their review and investigation of a claim made by an Insured directional drilling contractor on their Contractors Liability insurance policy, relating to work performed at a trucking company’s fleet maintenance and fueling facility. The claim pertains to an incident in which the Insured struck a subsurface diesel fuel pipeline at the truck fueling facility while performing directional drilling for the installation of a subsurface electrical conduit, as a contractor to the facility’s electrical utility/service provider. The incident resulted in a release of diesel fuel which impacted soil and groundwater at the facility. Remediation of the impacts is ongoing with the cost expected to potentially approach $1 million.
VERTEX was asked by the Insurance carrier to evaluate the available information/documentation and provide a professional opinion as to whether or not the Insured had followed the proper procedures, in accordance with applicable State law, for assessing subsurface utilities and obstructions prior to “digging” or whether they had been negligent in that regard. VERTEX ‘s review concluded that the Insured contractor had followed all the legally required procedures (per Maryland Title 12),and exercised the appropriate standard of care in assessing the potential presence of underground utilities and other structures. VERTEX further concluded that other identified parties (e.g., the facility/ property owner and a private underground utility locator that was retained by the Insured to assess the subsurface on the facility property) bore significant responsibility for the incident occurring.
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