The Client and Its Challenge
A major petroleum distribution company, along with several other petroleum companies, faces more than 50 lawsuits filed by states, municipalities and water supply districts against the petroleum and chemical industry alleging that the companies were responsible for the release of methyl tertiary butyl ether (MTBE), a fuel additive, into groundwater. The defendants face liabilities potentially totaling hundreds of millions of dollars.

The Risk Consulting Solution
Marsh consultants, including attorneys and claims professionals, are conducting an in-depth coverage analysis to determine the extent of the company’s potential liabilities, ascertain the applicability of several insurance policies spanning several years, and identify potential gaps in coverage that could result in unforeseen liabilities.

Using Marsh’s proprietary Insurance Coverage Explorer (ICE) technology, Marsh consultants are able to organize all of the company’s insurance policies, capture relevant information and access data. Marsh also provides a graphic representation of the company’s insurance assets, which clearly illustrate which policies provided the most coverage as well as gaps in coverage.

Results
As a direct result of Marsh’s work, the company will have a clear idea of its insurance assets, which, in this case total in the millions, and which policies provide the greatest amount of coverage and can make contingency plans to deal with coverage gaps. The company will have a clear understanding of its risks relating to the class-action suits and can effectively protect itself from liabilities totaling hundreds of millions of dollars.