In the wake of the current insurance cost tidal wave, companies have options—though costly and restrictive. For example, some environmental impairment liability (EIL) insurance carriers’ offer limited mold coverage for a fee. And Contractors Pollution Liability (CPL) policies will sometimes
offer mold-related protection; but insurance firms are likely to scour a company’s performance history and require internal mold training and awareness programming—and again, the price is not cheap.

Premiums are not the only concern, however. Higher deductibles are becoming an industry norm, and sub-limits provide increased restriction on what will and will not be covered.

According to the U.S. Environmental Protection Agency, there is no practical way to eliminate mold spores in an indoor environment. The best way to control mold growth is to control moisture. Mold can begin growth in as little as 24 hours. Roof leaks and water pipe leaks are common sources of water accumulation that may cause mold growth. Mold has closed public schools and caused companies to spend millions of dollars on environmental tests and remediation.

Nolan Day, national promotion director for W.R. Meadows underscores the need for team unity:

“When owners, designers, construction teams, and manufacturers communicate effectively and work together, they can circumvent vapor and water penetration issues. We need to realize that, while asbestos abatement has pretty much run its course, mold is here to stay.” Michael Kennedy, general counsel of the Associated General Contractors of America, adds, “Mold cases cast a very broad net. If mold infests a new or renovated building, all of the parties in the construction process are going to lose.”