fbpx
Client Login

Stay Updated

Subscribe to the INSURICA blog and receive the latest news direct to your inbox.

Subscribe to the blog

Managing Mold Exposures

The explosive growth in toxic mold damage claims in the past decade has led to an almost universal exclusion of mold-related claims in commercial property and general liability policies. To close this gap, consider a customized environmental insurance policy, which specifically addresses mold as a covered cause of loss.

Transferring Risk
For those in the building industry, a contractor’s pollution liability (CPL) policy is specifically adapted to address mold as a pollutant. CPL insurance was originally developed in the 1980s for hazardous waste firms before mold was a pollutant of concern. Today, CPL is commonly purchased by those performing environmental and mold remediation work, but any contractor that constructs or works in buildings occupied by people should have a modified CPL endorsement to cover its mold-loss exposure.

According to environmental risk management experts, there are over 100 different manuscript environmental insurance policies available, and most can be adapted to cover toxic mold. With so much to consider, INSURICA can assist you in designing a policy that meets your business-specific needs.

Contract Provisions
Anyone entering into a real estate, construction or other kind of contract concerning real property should consider whether or not the risk of future mold claims and remediation should be allocated by contract and, if so, how. For instance, construction contracts and real estate leases may include indemnity language specifically intended to:

  • Allocate liability for mold-related personal injury claims;
  • Include representations and/or warranties concerning absence of mold; and
  • Name the party(s) responsible for identifying and remediating mold.

If you are entering into a contract, be sure to read the contract language carefully to gain a clear understanding of your portion of the liability.

Managing Exposures
In addition to transferring risk through insurance and contracts, INSURICA has the resources to help you develop protocols to identify, prevent and remediate mold. If there is an established standard operating procedure for prevention of mold and water intrusion, underwriters will weigh that favorably. We can provide information to help you to:

  • Determine if a mold problem exists
  • Establish prevention methods
  • Correct the problem through remediation

The environmental insurance market is constantly changing to meet the needs of the marketplace. We are committed to developing solid relationships with top-rated carriers who are experienced in environmental liability coverages. Contact us today to learn more about how our expertise can benefit you.

This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2007-2010 Zywave, Inc. All rights reserved.

About the Author

INSURICA
INSURICA

Share This Story

Keep up to date

Subscribe to the INSURICA blog and receive the latest news direct to your inbox.

Subscribe to the blog

Related Blogs

Hot Work Hazard Prevention for Oil Field Workers

September 21st, 2022|Blog, Energy, Safety Tips|

“Hot work” refers to any task that involves burning, welding, or the use of fire- or spark-producing tools, or actions that generate sources of ignition. On an oil job site, there are numerous potential hazards, including well heads, fuel tanks, mud tanks, tank batteries, gas separators, and oil treaters.

Cyber Attack Resilience in Oil and Gas

September 19th, 2022|Blog, Energy, Safety Tips|

The energy sector is no stranger to a cyber attack. For many American families and businesses, the most personally disruptive incident in recent memory came in May 2021 with the ransomware attack that shut down the Colonial Pipeline, a major U.S. oil and gas pipeline responsible for supplying nearly half of the East Coast’s petroleum.

Considering the Risks of Wind Energy Projects

September 18th, 2022|Blog, Energy, Safety Tips|

As the shift to alternative sources of energy continues to be a topic of utmost relevance, investments in wind energy have become increasingly prevalent. While the energy source receives a great deal of attention, it also entails a complicated combination of risks, both financial and commercial. If you are considering wind farms as a potential investment, take the following factors into account to ensure that you have an ample risk management plan for this complex and largely unexplored territory.

Go to Top