As the number of mold-related claims grows, so does the scope of defendants. Potentially hazardous mold has been found in hotels, hospitals, schools, airports, homes, and offices across the country. Taking into account that mold can cultivate in virtually any structure, practically all businesses face mold-related risks.

In addition to exorbitant liability costs and millions of dollars in property damage, mold contamination can significantly impact an organization's workforce and operations. Mold-related injury claims range from headaches to eye irritation, though mold has yet to be proven as the direct cause of such health problems. In some cases, employees have experienced sinus and respiratory problems after being exposed to mold in the workplace. Furthermore, some businesses have been forced to temporarily shut down in response to health complaints from employees or halt operations to exterminate mold on the premises.

As with many liability risks, you can prepare for mold-related claims before they impact your company. To protect workers, vendors, clients, and other visitors to the workplace, you can implement stringent measures to reduce the likelihood of mold growing in your organization's offices, facilities, and other properties. By establishing a preventative program, you may be able to delete mold exclusion language from your insurance policy to cover some mold-related risks. If you have detected mold on company grounds, early action can mitigate additional risks to your people and your business by remediating, removing, and preventing mold from spreading.



"If you already have a mold problem — act quickly. Mold damages what it grows on. The longer it grows, the more damage it can cause."
United States Environmental Protection Agency, www.epa.gov, 1/29/2004

In order to identify, manage, and reduce your business's mold-related risks, start by asking yourself the following questions:

• Is our staff exposed to mold in the workplace? If so:
  

  • What steps have we taken to decrease mold exposure among our staff?
  • Do we need to inform our staff of the potential health risks associated with mold?
  • Do we need to provide our staff with protective equipment?
  • Some staff members who have allergies may be more sensitive to mold exposure. Do we need to identify these workers and provide them with additional information, training, and safety equipment?

• Have we taken the proper steps to ensure that mold will not grow on our property in the future?
  

  • Do we have procedures in place to detect mold on the premises?
  • Do we have trained staff and supplies available to properly kill and remove mold?
  • Will we have to suspend business operations if we need to remediate mold?
  • Are we prepared to absorb the costs of temporarily halting business operations?

• As a hospital, hotel, or other type of lodging, are we aware of the increased likelihood of risks associated with our type of property, considering that several, if not many, areas on our premises are particularly prone to mold, including bathrooms, kitchens, and HVAC systems?
• Do we have a team of professionals in place to identify our exposures to mold-related risks?
• As a business in contracting, construction, property or building management, HVAC installation, architecture, or construction supply, are we liable for mold-related claims?
• Do we have a strategy for managing suits brought against us?
• Do we understand our current and old insurance policies regarding mold-related claims?
• Are we aware of the costs associated with claims litigation? Do we have a plan in place to reduce such costs?
  

"‘How should buildings be designed, built and operated to minimize problems with mold and moisture?’ may be the number one question asked today in the construction industry."
American Society of Heating, Refrigerating, and Air-Conditioning Engineers press release, 12/12/2003

These questions illustrate the complexity and depth of mold-related risks that may impact your business. There are a variety of services that can help your business recognize, manage, and even prevent mold-related exposures with the following services:

Workforce Strategies — Identifies, quantifies, and assesses workforce and workers' compensation risk issues and helps manage costs through customized, strategic solutions. Workplace design, safety, and injury management programs can help manage your mold-related risks.

Property Risk Consulting — Helps clients design and implement a loss prevention and control strategy by using a business-centric approach. Focusing on your organization's goals, objectives, and challenges, our consultants help you plan for all key risk issues that may affect your business, including mold-related exposures.

Liability Claims Consulting — Assists companies in establishing processes and procedures for managing claims as well as assisting in the selection of third-party claim administrators. Also helps companies achieve measurable savings in claim costs whether they are simply insured, self-insured, or insured under loss- sensitive programs with significant retained risk. In addition, facilitates equitable and timely claim payments when dealing with complex claims, disputes over coverage, or difficulty in obtaining a claim payment.

Forensic Accounting and Claims Services (FACS) — Assists clients in establishing accounting protocols to track loss-related costs and expenditures as well as assessing large and complex damage claims. FACS services are critical for companies that must defend themselves against claims.

Property Claims Consulting — Helps clients successfully navigate the complex recovery process through design and implementation of pre- and post- loss management plans.

Mass Tort and Complex Liability Consulting — Assists companies in understanding, organizing, mitigating, and resolving mass tort and complex liability exposures. Includes policy archaeology, coverage analysis, and allocation modeling to support financial planning, claims negotiations, and insurance recoveries.

Risk Technologies — Assists companies in managing the data administration process for mass tort actions from the initial lawsuit to the costs incurred through settlement as they are distributed to plaintiffs. Once a claim is entered or electronically updated, clients can manage all aspects of the claim, including setting reserves, making payments, cutting checks, case management, and reporting.

By identifying and managing mold-related risks now, your business may be able to avoid costly claims later. If you have any questions or would like additional information, please contact us.