Losses involving suicides, severe bodily injuries anddecomposition frequently require the services of a restoration orbioremediation firm trained in handling trauma and crime scenecleanup. Bioremediation involves the clean-up of blood and bodilyfluids, and infection control resulting from exposure to diseasessuch Hepatitis, HIV, MRSA and C-diff, Ebola, and bloodbornepathogens.

Bioremediation poses serious risks to those who work in thefield and every scene should be treated as though it containsbloodborne pathogens. Other potentially infectious materials (OPIM)and bloodborne pathogens are microorganisms or viruses that can befound in blood and bodily fluids. Extreme caution should be used onthese claims since unknown infectious materials may be involved.Even the slightest contact with these materials could result inexposure to a life-threatening disease.

Factors such as insurance, upgraded personal protectiveequipment (PPE), training, and the licensing required to generate,transport, store and dispose of biological waste impact pricing forthese projects.

Bioremediation requires compliance with all applicable laws andregulations including OSHA's Bloodborne Pathogens standard (29 CFR1910.1030), which covers all employees who come in contact withhuman blood or other potentially infectious material in the courseof their work. Implemented in conjunction with the OSHA standardshould be Universal Precautions, an infection control approach thatrequires that all human blood and certain bodily fluids be treatedas if they were infectious.

Other governing bodies such as the National Institute forOccupational Safety and Health (NIOSH), the EnvironmentalProtection Agency (EPA), the Centers for Disease Control andPrevention (CDC), as well as the Department of Transportation (DOT)and individual states have regulations concerning the transport ofbiological waste.

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

Training is not limited to the rules and regulations that governthe industry. A technician is literally a “jack of all trades” whofrequently 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 ofcoverage questions may arise surrounding the exclusions. Thequestion as to whether or not coverage applies is often the firsthurdle an adjuster will encounter. Common coverage issues mayinclude:

• Intentional act

• Innocent spouse

• Pollutant

• Named peril

The standard policy and the Unfair Claims Settlement PracticesAct in most states encourage insurers to extend coverage in favorof an insured when policy language is unclear or interpretation isambiguous.

He who estimates the loss

When writing an estimate, an adjuster should be cognizant of thedifferences between the restoration and bio remediation industriesand why the claims associated with a bioremediation project mayhave a different pricing structure than traditional restorationclaims.

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

Building the estimate

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

The second method involves estimating software, such asXactimate, which is used by the restoration industry. The TraumaCrime Scene Cleanup category was added almost three years ago andincludes approximately 67 different line items. Those figuresshould be used and not the Hazardous Waste/Mold Cleaning orBiohazard categories. The Trauma and Crime Scene Cleanup categoryis still in its infancy and many tasks associated withbioremediation projects have not yet been included in thiscategory, so additional line items should be used to accuratelyreflect the associated costs.

Since cleaning a square foot of flooring on a construction siteis not the same as cleaning a square foot of wood flooring thatcontains human remains, routine tasks such as the removal offlooring, ceilings, walls and cabinetry must frequently be pulledfrom other categories even though the allowance does not reflectthe additional risks of dealing with biological fluids andOPIM.

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

Hazardous waste management

A portion of the estimate that may generate questions involvesdetermining an accurate cost for the disposal of hazardous waste.The amount of contents a biohazard container can hold is based onweight. These containers will be filled with the affectedstructural 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 thediscarded/contaminated towels.

A qualified company knows there are very specific OSHArequirements concerning how the containers are to be packed. Due tothe possible exposure to sharps, waste is not to be “compressed”into the container. Therefore, when an item is placed into acontainer, one is not allowed to compress the contents to allow foradditional room so more items to be placed inside. A container isconsidered full when it meets the weight restriction or when itcannot 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 tothe transportation of waste and possibly additional licensing. Thecost also includes alterations made to transport vehicles to meetrequirements to legally transport the biological waste, temporarystorage fees, the pick-up fee per container, and the disposal feewhich is determined by weight. The number of bio containersutilized during the course of a job should be clearly documentedthrough a manifest.

The “comparative estimate”

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

A company offering a comparative estimate may not be aware ofany complications that arose and other factors impacting theproject. The review is usually based on photographs without thebenefit of being onsite to observe the job being performed in realtime.

When evaluating the scope of work, there is no specificrequirement by OSHA as to what is a preferred/recommended method toeliminate odor, nor does the EPA recognize any one chemical thatwill sanitize and disinfect on its own. There are various ways toevenly distribute odor neutralization and the use of one methodover another is a matter of preference. This does not mean that onemethod or the other is incorrect, much less unreasonable orunnecessary. The techniques utilized by one company should notdictate the procedures employed by another in its cleaningprocess.

Resolving the claim

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

Understanding what comprises bioremediation projects and howthey differ from more traditional restoration claims is animportant step to understanding the scope and cost involved.Contractors performing this type of work should have the propertraining, expertise and insurance so the employees, insured and theinsurer are all protected.

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