What is Contractors Pollution Liability Insurance and Why You Need It

If you are involved in the building and construction business, then contractor's pollution insurance is essential. Even more important is that you ensure your policy clearly includes mold cover. It may not seem a big issue, but there have been many examples of claims relating to mold where the company concerned has found that mold was a specific exclusion.

Indeed, if you haven't purchased specific pollution insurance and just have a general liability policy then you are very likely to find mold is excluded. Even if you have a contractor's pollution liability insurance policy, mold may not be covered, or if it is, the limits and deductibles may preclude you from having adequate coverage.

Just run through the following examples of incidents where a claim for mold was lodged with a company and consider what the consequences may have been without having full mold protection included in the policy.

A contractor built a new housing block. Poor workmanship meant that water was leaking through the roof and into the cavity walls. No one was aware of the leak for some time, because there was no internal or external evidence of damp. However, over time mold grew inside the cavity walls; mold thrives in damp dark places, eventually began appearing on the internal walls. By the time the internal mold growth was evident the internal sections of the cavity walls where amassed with mold. Additionally upon inspection the mold growth contained mycotoxin spores; the most hazardous type mold produces. A claim was presented to the contractor's who fortunately had purchased pollution liability insurance that included toxic mold.

A contractor employed to restore and repair a property that had suffered severe water damage was presented with a large lawsuit because it was claimed they did not remove the moisture properly and effectively. Although the restoration work was completed and aesthetically appeared to be fine there was still substantial moisture left. This allowed mold to grow and the owners of the property suffered damage to their health. The lawsuit not only contained a claim relating to the health issues, but also included a claim for the work to be redone. Without the cover afforded by a pollution liability insurance that includes mold, the contractor would have been liable for everything personally, instead of just the deductible.

Two owners of an apartment issued a lawsuit against a company for shoddy building work which led to water leakage and severe mold growth. The owners both suffered asthma and bronchitis attacks and upon medical investigation were found to have impaired immune functions. It was discovered that it was all caused by toxic mold spores in the apartment. The company who undertook the work were order to pay compensation in excess of $800,000, a figure they would not have been able to pay without adequate pollution liability insurance.

These are three examples as to why it is essential you have a pollution liability insurance in place, and more specifically one that includes cover for mold.

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Dave Taylor writes on business issues and recommends Beacon Hill Associates (http://www.b-h-a.com) for environmental protection solutions. Visit http://www.b-h-a.com/cpl for detailed information on Contractors Pollution Liability insurance.

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