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Please review this overview of the new exclusion regarding
Mold that has been added to most general liability policies.
We want to bring these important exclusions to your
attention.
The typical contractors general liability policy has a new
exclusion of coverage being added at renewal. The Exclusion
deals with Mold, Fungi, and Bacteria. The Mold problem and
potential exposure to large awards in litigation over mold
in a construction project have taken on new dimensions.
Large amounts of moisture can be introduced into a building
by several causes including improper design, construction or
even its air handling system.
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General GL Exclusion—You do not have
coverage for injury or property damage arising, directly
or indirectly out of any fungi, including mold or
Bacteria on or in a building or structure. It also
excludes clean up costs and cost associated with
testing.
Moisture problems in buildings can be caused by a variety of
condition, including roof and plumbing leaks, condensation
and excess humidity. Some problems have been linked to
changes in construction practices. These changes include
more tightly sealed buildings that trap in moisture. With
the added press on this issue a water claim that would have
been rectified relatively cheaply years ago now have the
added component of Mold Testing. Consequently, like the
asbestos and lead crisis of years past, we expect litigation
on Mold to increase as numerous (most frivolous) lawsuits
look to the deep pockets of insurers to collect on a
multitude of claims. Throughout the industry the Mold
Exclusion is being adopted or will be shortly on all General
Liability Policies.
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