Environmental Insurance

Specialized Coverage for Mold Liability

Is mold the “new” asbestos? When it pertains to insurance coverage, the answer is a resounding “yes.” Since the late 1990s, most commercial insurance policies have excluded mold specifically, creating a coverage gap for many insureds. Public knowledge of mold related illness and the difficulty of remediating and restoring mold damaged property has caused an additional concern to those who own and manage commercial and habitat ional properties. Indoor air quality issues have been the source of insurance claims for bodily injury and property damage for decades. Mold is now the leading cause of such claims and also the leading cause of such claims to be declined for coverage under traditional insurance policies and even pollution insurance policies.

What is the solution to this burgeoning mold issue? A specialized environmental insurance program with mold and bacterial matter coverage, custom tailored by HFC environmental insurance specialists to fit the specific needs of the client. HFC consults with the client to meet the tough underwriting criteria necessary to secure the appropriate coverage to cover mold exposures. HFC works with clients to develop mold Operations and Maintenance plans and to provide the proper certifications for the client’s personnel to not only meet underwriting criteria but to allow the client to mitigate mold claims from the start.

Mold insurance covers bodily injury and property damage claims and also provides coverage for defending the client against such claims. The defense element of coverage provides toxic tort defense against frivolous lawsuits for mold issues that should not be a burden to the client. Relying on in-house counsel to manage such claims can lead to a situation where defense costs far outweigh the cost of the actual “hard” claims costs. As class action attorneys begin to focus their attention on large paydays generated from mold claims, prudent property owners and managers must be prepared or face the economic consequences to their fiduciary bottom line.

If your organization is not covered for mold exposures or you have attempted to obtain mold coverage in the past and have been unsuccessful, you may find yourself in the undesirable position of settling mold claims without relying on your insurance program to foot the bill. Contact HFC’s mold insurance specialist to obtain an analysis of your current insurance program and find out more about how HFC can help eliminate your mold coverage gap