Other governing bodies such as the National Institute for Occupational Safety and Health (NIOSH), the Environmental Protection Agency (EPA), the Centers for Disease Control and Prevention (CDC), as well as the Department of Transportation (DOT) and individual states have regulations concerning the transport of biological waste.

This type of work can take both a physical and emotional toll on employees. Ongoing and extensive training in crisis management, post-traumatic stress disorder and sensitivity/compassion should be provided to all technicians. Turnover for those employed in this field is extremely high, which can add to the training costs.

Training is not limited to the rules and regulations that govern the industry. A technician is literally a “jack of all trades” who frequently has additional experience in areas such as biology, chemistry, carpentry, HVAC, plumbing, flooring, materials, equipment, evidence preservation, photographic documentation, sketching, estimating, and project management.

Claims handling

When an adjuster encounters a bioremediation claim, a number of coverage questions may arise surrounding the exclusions. The question as to whether or not coverage applies is often the first hurdle an adjuster will encounter. Common coverage issues may include:

• Intentional act

• Innocent spouse

• Pollutant

• Named peril

The standard policy and the Unfair Claims Settlement Practices Act in most states encourage insurers to extend coverage in favor of an insured when policy language is unclear or interpretation is ambiguous.

He who estimates the loss

When writing an estimate, an adjuster should be cognizant of the differences between the restoration and bio remediation industries and why the claims associated with a bioremediation project may have a different pricing structure than traditional restoration claims.

When choosing between comparative estimates, think in terms of comparing “apples to apples” and look at what is included in the estimates and the level of expertise provided to ensure the various companies submitting bids are offering the same services.

Building the estimate

Two methods can be used to build an estimate. The first is to allow for a flat hourly rate which includes all tasks performed and utilizes rates consistent with reliable published resources specific to the bioremediation industry, such as “The Bluebook Residential & Light Commercial Cost Guide for Cleaning, Reconstruction and Repairs.” Another resource for pricing would be the American Bio Recovery Association (ABRA).

The second method involves estimating software, such as Xactimate, which is used by the restoration industry. The Trauma Crime Scene Cleanup category was added almost three years ago and includes approximately 67 different line items. Those figures should be used and not the Hazardous Waste/Mold Cleaning or Biohazard categories. The Trauma and Crime Scene Cleanup category is still in its infancy and many tasks associated with bioremediation projects have not yet been included in this category, so additional line items should be used to accurately reflect the associated costs.

Since cleaning a square foot of flooring on a construction site is not the same as cleaning a square foot of wood flooring that contains human remains, routine tasks such as the removal of flooring, ceilings, walls and cabinetry must frequently be pulled from other categories even though the allowance does not reflect the additional risks of dealing with biological fluids and OPIM.

Estimating software allows for an hourly rate, but then requires one to add in each individual task broken down by square foot to build the estimate in order to arrive at an accurate reflection of the costs associated with the scope of work performed. The estimate must also reflect the total hours required for the various tasks associated with a bioremediation project because many of them are time and labor intensive.

Hazardous waste management

A portion of the estimate that may generate questions involves determining an accurate cost for the disposal of hazardous waste. The amount of contents a biohazard container can hold is based on weight. These containers will be filled with the affected structural surfaces such as flooring, subflooring, drywall, etc., and all non-porous items compromised by biological fluids or OPIM. The containers also hold the used PPE (gloves and suits) and the discarded/contaminated towels.

A qualified company knows there are very specific OSHA requirements concerning how the containers are to be packed. Due to the possible exposure to sharps, waste is not to be “compressed” into the container. Therefore, when an item is placed into a container, one is not allowed to compress the contents to allow for additional room so more items to be placed inside. A container is considered full when it meets the weight restriction or when it cannot hold any additional contents.

There are also very strict regulations regarding the generation, transportation, record keeping and storage of biological material. The cost of the containers will typically include fees relating to the transportation of waste and possibly additional licensing. The cost also includes alterations made to transport vehicles to meet requirements to legally transport the biological waste, temporary storage fees, the pick-up fee per container, and the disposal fee which is determined by weight. The number of bio containers utilized during the course of a job should be clearly documented through a manifest.

The “comparative estimate”

A comparative estimate is a tool used to determine if the completed work has been invoiced at reasonable and customary rates. Bioremediation is an emergency service and in most cases the work has already been completed by the time the claim has been filed. Companies offering this service are not bidding on the job when evaluating the invoice, and the question is not necessarily who could have done the work the cheapest, but rather if the price charged was within the reasonable and customary rates for the geographical area and the industry itself.

A company offering a comparative estimate may not be aware of any complications that arose and other factors impacting the project. The review is usually based on photographs without the benefit of being onsite to observe the job being performed in real time.

When evaluating the scope of work, there is no specific requirement by OSHA as to what is a preferred/recommended method to eliminate odor, nor does the EPA recognize any one chemical that will sanitize and disinfect on its own. There are various ways to evenly distribute odor neutralization and the use of one method over another is a matter of preference. This does not mean that one method or the other is incorrect, much less unreasonable or unnecessary. The techniques utilized by one company should not dictate the procedures employed by another in its cleaning process.

Resolving the claim

In some cases an adjuster may have very specific questions about the scope of work such as why a specific task was performed or why it took so much time. These are very relevant and legitimate questions to ask when determining if the costs and scope of work to be performed are appropriate. The remediation company should be able to provide the answers the adjuster is seeking.

Understanding what comprises bioremediation projects and how they differ from more traditional restoration claims is an important step to understanding the scope and cost involved. Contractors performing this type of work should have the proper training, expertise and insurance so the employees, insured and the insurer are all protected.

Michele Jacob is the claims manager with Archangels BioRecovery, Inc. and came to the bioremediation industry with 23 years of extensive experience in property and casualty claims. She can be reached at [email protected].