How Does General Liability Insurance impact a Mold Claim?

1/20/2020 (Permalink)

Here Are 3 Things to Know About Your Insurance Coverage

Many landlords in Henderson, CO, must consider how to protect their assets from a potential lawsuit. After all, it could only take one suit to drain a business's financial resources. For many agencies, the answer is purchasing general liability insurance, a policy that offers coverage for many unsuspected, potentially crippling issues. Does it cover everything, or do landlords still need to worry about mold insurance claims? Here are three things to know about your insurance coverage.

1. What Does the Policy Include?

Mold remediation companies work hard to cleanup a space, but it costs. It's natural then to turn to insurance to help cover costs. General liability is intended to handle certain trouble. If something on your property endangers the neighboring store, this pays to repair the damages. In the same regard, if a visitor becomes harmed while on your premised, this would pay compensation for pain and damages. Mold, though, may or may not be included.

2. What Is Pollution Exclusion?

Many suits may argue that mold poses an environmental hazard. Agencies are fighting this argument by writing in pollution exclusion clauses. This removes them from accountability in mold insurance claims, especially when lawyers argue that the fungus established a contamination that created a harmful atmosphere.

3. What Is a Business Risk Exclusion?

Was a faulty part to blame? If so, a mold claim can be denied under the business risk exclusion. Insurance companies do not want to pay when the contractor's part failed to do its job or poor construction allowed for the complications. This clause could allow denial.
You may expect that mold insurance claims can be handled quickly under a general liability policy; however, agencies often have clauses that prevent payment. Both pollution and business risk clauses undermine the general arguments made by legal counsel, leaving a company capable of refusing to pay the remediation bills.