Water and mold are both naturally occurring. Mold is one of the most common organisms on earth and water is everywhere. Are they really pollutants, what is a pollutant anyway? The definition can change with time. It also can depend on where a substance is found or what is in the substance. Even the most benign substances in the wrong place can be a pollutant.
Commercial cleaning contractors have always worked with water and mold, either intentionally or unintentionally. Like all contractors, they can disrupt hidden pollutants, voluntarily or involuntarily transport pollutants, and even dispose of pollutants in the course of their work. Some savvy cleaning contractors purchased Contractors Pollution Liability coverage to protect themselves from this liability but for many years, mold was not a large part of this conversation.
Here’s Johnny! In the late 1990’s and early 2000’s there were multiple high profile mold claims. One involved Ed McMahon, Johnny Carson’s sidekick. Large claims began to pile up and the insurance landscape changed quickly for many contractors including restoration contractors. By 2003 most insurance companies used absolute mold exclusions on their General Liability policies. These were the very policies that many restoration contractors historically used to protect their operations from mold lawsuits.
Cleaning contractors still needed to deal with water and mold just as they always did. But there was now a very large, very publicized risk of mold. Clients began to change contract language and wanted some type of protection that a restoration contractor’s work would not result in ongoing mold issues. Restoration contractors were in a tough spot, wanting to bring the solution to help clients but also needing a way to protect their business from possible large mold related claims.
At this strategic time Contractors Pollution Liability became even more important for cleaning contractors. This type of policy was flexible enough to allow for mold to be considered a covered pollution condition. Some insurance companies went further and packaged together General Liability, Professional Liability and Contractors Pollution Liability into one policy to help reduce gaps in coverage. However, one should be aware that policy language will vary from insurance company to insurance company. Utilize a broker that has industry knowledge and can walk you through the specifics of what you need.
So, is water or mold a pollutant? It depends on who you ask, what’s in it or where it is located. The good news is that however you define it, you have help. You can take on more contracted work knowing you have the proper insurance backing to comply and respond if something were to happen. And your floor care and commercial cleaning business can obtain financial protection from the significant liability of water or mold, however you define it.