Do You Need to Add Mold Coverage to Your Pollution Liability Insurance?

9/1/2020 (Permalink)

Mold insurance claims can potentially be covered under pollution insurance

Independent contractors in St. Peters, MO, face so many potential risks, they can’t all be listed. Lawsuits are, unfortunately, common in the contractor world, and insurance doesn’t always cover damages. If your business produces any kind of waste, you may already be familiar with pollution liability insurance. Mold insurance claims can potentially be covered under pollution insurance.

What Businesses Typically Need Pollution Insurance?

Contractors who work in the physical world (as compared to computer or administrative contractors) often produce waste. Some examples include

Energy extraction, refinement and storage
Agricultural
Construction
Waste transportation and storage

What Is Mold Insurance?
Mold insurance claims have increased sharply in recent years. The damage mold causes is a frequent nuisance and an occasional disaster. Besides its risk to drywall and fabrics, it can chew into damp wood, causing potential structural damage.
Without regular mold inspections, hidden colonies can continue to eat into construction materials for years before being discovered – and they can spread throughout the building in the meantime.
Coverage may come in the policy or in a rider. For certain types of contractors, it may be found in their pollution liability. A mold claim may cover inspection costs as well as damage repair, but each policy varies.

Why Would Mold Coverage Be on Pollution Insurance?
Water is the proximate cause of most mold – and water can be a pollutant! Consider your commercial building; the building envelope is primarily concerned with keeping water out. A tiny leak in a roof can, if left for years, create a hazardous situation inside.
Contractors who routinely produce wastewater – even if just for regular cleaning – may be liable for the damage it causes. If someone who has insurance makes a claim, their insurance company will look for the cause – and for anyone to blame.
Mold insurance claims made against your pollution insurance can be tricky. Overlapping layers of liability can make figuring out who’s responsible a lengthy nightmare.
Contact a mold restoration company experienced in working with insurance companies to help you ensure you’re being treated fairly. This can prevent unnecessary policy rate increases or even help prove you weren’t the cause!