Mold: Insurance Industry Response

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Liability concerns Liability policies may respond if the insurance carriers do not consider "mold" to fall within the "pollutant" definition and if there is a proper trigger of coverage. What losses can be expected from mold-related liability claims? Bodily injury liability Property damage liability Emotional distress / mental anguish claims Emotional distress typically not covered Mental anguish typically not covered Medical expenses Who has liability exposure? A wide spectrum of players has liability exposure. Here is a list that will give you the general idea of who could potentially be held liable. Insurance agents/brokers/companies Failure to advise, offer coverage, repair properly, respond quickly Property owners (landlords) Against prior property owners from current property owners Against landlords for failure to advise and remediate Anyone responsible for someone else's property Tenant under triple net lease Must put premises back to condition that existed immediately preceding a loss Property management company Bailee Contractors (general/subs) Architects Engineers Developers Landscapers Construction material manufacturers, distributors and suppliers All for failure to discover, disclose, faulty workmanship, construction defect, product defect Testers, remediators, restoration companies Claims adjusters Real estate agents/brokers Failure to disclose Directors and officers (condominium) Of all types for wrongful acts causing financial loss Employers For on the job injury; possible willful and gross negligence claims due to failure to remediate

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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.