Mold Insurance Claim Scenarios

A mechanical contractor installed a heating, ventilation, and air conditioning system in a new commercial office building. After three years, mold and mildew growth caused the release of airborne bacteria throughout the entire building, resulting in poor indoor air quality. Claims against the contractor for bodily injury and loss of property use exceeded $500,000. In addition, the contractor was responsible for decontaminating the HVAC system.

Two tenants of an apartment complex alleged toxic mold and fungi caused their asthma, bronchitis, cognitive deficits and impaired function of their immune systems. A Delaware jury awarded over $1 million in damages; however, the award was reduced to $818,390 after issues of comparative negligence were taken into account.

A couple claims a loss of business and bodily injury due to growth of toxic molds in a rental space leased from the defendants interior design business. The husband and wife claimed economic damages in excess of $1.8 million and general non-economic damages of an additional $3 million.

These claims examples have been provided to us by our insurance companies over the years. These represent actual environmental claims they have seen. While the coverages we offer are designed to address these general issues, we make no guarantee or warranty that any individual policy we offer will respond to all issues as described herein. Please refer to the actual policy wording in each offered form to determine coverage applicability and acceptability.