Is It Time To Get Pollution Liability Coverage To Cover Mold?

7/22/2019 (Permalink)

Ceiling tiles with mold

Something about the word “general” often tricks property managers into believing that any damage caused by mold will be covered by their commercial general liability insurance. Many people are confused and concerned when they learn otherwise. How will they pay for the 10 by 10 area of dry wall that was removed? What about all the carpeting that had to be ripped up or the replacing of the ceiling tiles? For that, they need pollution liability.

Who Needs Coverage for Mold Insurance Claims

No building is immune from mold. What is worse, any building may develop mold in places that are only discovered when the damage is costly to repair. This may occur in storerooms, filing cabinets or warehouses. Because of this, virtually every property manager should consider pollution liability, even when they do not handle asbestos or other hazardous waste. Here are some of the buildings most often affected by mold:

• Mills
  
• Farms
  
• Greenhouses
  
• Antique shops
  
  

Why You Need Mold Claim Coverage

Before the mid-1980s, many businesses did enjoy the inclusion of mold insurance claims under their general liability insurance. However, over time, insurers began to remove this from their policies. This may have been as a result of asbestos and the many other pollutants discovered in buildings built before 1980. It simply became too expensive to cover pollutants under regular insurance.

What Happens for Businesses That Have Coverage

When a building has sufficient coverage, this helps to ensure that their assets are protected. Work completed by mold cleanup specialists and any follow-up repairs typically get covered too. In some instances, a third party may choose to sue over the mold and any damage or complications it may have caused. Legal fees and the payout of settlements may also be covered.

Mold insurance claims in Cockrell, MO can be costly. However, if there is no special policy to cover these claims, they may be denied by the insurance company, forcing companies to pay out of pocket.