Mold in Your Business

12/30/2021 (Permalink)

Because you are a responsible business owner, you purchased commercial insurance before opening. What you may not know, however, is that most policies fail to include comprehensive mold coverage.

Limitations of Standard Coverage

Check your policy to see if you are protected from mold and, if so, under which scenarios. Standard commercial policies only provide coverage under three limited circumstances:

1. Mold caused by fire or lightning.

2. Fungus resulting from what is known as a “specified cause”. Examples of these unusual circumstances include windstorms, smoke, sinkholes, hail, and vandalism.

3. Damages caused by the fungus itself resulting from one of the above “specified” cases.
For most, this level of commercial insurance protection remains insufficient. Because of this, you may consider purchasing Limited Fungus Coverage. Companies residing in flood zones might also contemplate expanding their insurance protection with a style of policy amendment known as an endorsement.

Limited Fungus Coverage
LFC protects businesses from mold caused by water damage, the most common fungal culprit. Note that compensation is only awarded if you take reasonable measures to prevent mold damage from spreading after the mold-producing event. Under LFC, your building in Lockport, IL, is covered for fungal sanitization as well as removal and restoration of infested building parts, such as replacement of affected drywall or an intrusive tear out required for access to compromised insulation. Costs related to post-repair mold testing are also included. Typically, insurers reimburse up to $15,000 per year for fungus-related destruction.

Don’t Rely on Coverage
Before needing mold insurance to remedy a tough situation, take measures to prevent mold from striking in the first place. Inspect your location for damp areas and promptly fix leaks. Regularly check ventilation systems and be sure they remain clean and properly maintained. Most importantly, prevent mold from worsening by contacting a respected mold cleanup service as soon as it’s detected.

Usually, commercial insurance policies only cover particular mold situations. Protect yourself by checking your agreement before fungus becomes an obstacle.