How To Understand General Liability Insurance and Mold Claims

3/22/2022 (Permalink)

Finding a mold infestation in your business can cause a bit of distress. We want to remind our clients that our team is always close by and on-call.

Mold Claims And General Liability Insurance: What You Need To Know

Navigating mold insurance claims as a service provider in Yucaipa, CA, is so complex that it's nearly worth turning in your business license. Hyperbole aside, mold is a contentious topic in the insurance world. The primary reason for this is that mold is virtually omnipresent and wreaks havoc where it lands. As such, the majority of general liability insurance policies have broad, sweeping mold exclusions. Present an insurance claim with the word "mold" in it, and your insurer is likely to wash their hands of you. Why is this and how do you protect your business?

General Liability Insurance

Basically, mold insurance claims are difficult to manage because mold itself isn't the main issue. Usually, some form of water damage occurred first, resulting in the mold growth. This could have been a flood, or it could have been caused by a construction or maintenance defect, which trigger yet other exclusions in your general liability policy. Therefore, the mold, while problematic, is not what caused the damage initially; it is secondary damage.

How to Cover a Mold Claim

So how do you cover secondary damage which needs to be addressed in the form of mold remediation by a mold remediation specialist, when your general liability policy won't cover it?

Maintain a CPL

A Contractors Pollution Liability policy covers at least part of the gap left by your GL policy. These policies, too, have their limitations, but do cover more than most GL policies.

Use the Same Company

Find a company that handles both GL and CPL policies. When both policies are housed under the same roof, you're more likely to have your mold claim covered.

Create Custom Coverage

Ultimately, some type of umbrella policy is the final piece that protects your business in mold remediation claims. Shop around and find the company that will provide you with everything that you need to keep your business safe.

Don't let mold insurance claims ruin your business. Keep up with changes to insurance coverage and ensure that you have the necessary policies to cover all of your needs.