Things-are-a-changing in the commercial insurance business on mold claims, but at a snail’s pace. The universal insurance exclusions for fungi, mold and bacteria, introduced by insurance companies on a wide scale in 2005, are finally having a measurable effect in the area of environmental insurance claims in 2017. More losses are being denied under fungi, mold or bacteria excisions than ever before. The predictable effects of more excluded losses are just around the corner now for restorers.
With a little foresight and planning, most restoration firms will be unscathed by the increased use of fungi, mold and bacteria exclusions by claims adjusters. But the naive restoration firms are likely to get dinged with bad debts and uninsured liability claims, some of which have the potential to be company busters.