Improper Contracting Can Lead to Disastrous Outcomes

Not long ago, we heard of a Boston neighborhood that experienced a series of explosions resulting in a fatality, injuries and damage to over 100  structures. On October 11th, 2018, the Wall Street journal reported that improper pipe pressure appeared to have caused the blasts.  The National Transportation Safety Board determined that a contractor was replacing a century-old cast-iron pipe with a new plastic pipe just before the fires began. After shutting down the old pipe, the gas company continued to monitor a gas sensor on it instead of switching the sensor to the new pipe. This ultimately lead to the pressure inside the plastic pipe to exceed its limit, and gas began leaking into homes, triggering dozens of fires. In the end, the gas company has been deemed at fault due to improper engineering specifications.  As one might imagine, there are numerous risk management concerns any private business owner might lose sleep over if they were the contracting company associated with this project. How might the reputation of the Company be affected? Potential lawsuits might lead to defense related costs. Having coverages in place for high severity, low frequency events are an Oxford specialty. We encourage you to contact us to learn more.