Is Mold Covered by Commercial Insurance?

7/23/2022 (Permalink)

Mold damage in Prescott Valley, AZ

What Is Covered In Your Commercial Insurance

Mold growth can cause major damage to your Prescott Valley, AZ, business. Understanding how commercial insurance addresses mold is key to protecting your property.

Mold Insurance Coverage
Most commercial policies do not cover mold damage in most circumstances. Many policies include a fungus exclusion, which specifically states that damage is not covered if it is caused by the following:

• Fungus (including mold and mildew)
• Bacteria
• Wet rot
• Dry rot

Some policies do, however, state that mold damage is covered if it is caused by certain specified events, such as fire or lightning. Make sure that you read and fully understand your policy. Speak with your agent if you have any questions.

Mold Prevention

Because most commercial insurance policies do not cover mold, the best way to protect your business is to prevent the mold from growing in the first place. Mold needs three things to thrive: warmth, food and water. Most indoor locations are sufficiently warm and have multiple food sources available. The presence of moisture is the variable over which business owners have the most control. Keep indoor humidity below 50%. It may be necessary to run dehumidifiers in particularly humid areas of the building. Clean up spills and repair water damage as soon as possible. An experienced restoration service can help ensure the property is fully dry after flooding.

Another tactic for reducing the likelihood of mold growth is minimizing the number of spores present. Mold spores are invisible to the naked eye and present almost everywhere. Air purifiers with HEPA filters can trap a significant number of these spores before they have a chance to colonize. HEPA filters can also be installed in the HVAC unit. If your building has carpet, routine deep cleaning kills the spores that get trapped in the carpet fibers.
Commercial insurance generally does not cover mold damage in commercial buildings. However, understanding your policy and taking steps to prevent fungal growth in the first place are important steps you can take to protect your business.