Law, insurance & compliance · 1 min read
Is mould covered by commercial building insurance?
How mould is treated in commercial building insurance policies — usually excluded, sometimes covered when caused by an insured event, always contested.
Most commercial property policies exclude mould as a cause of loss. Many will respond to mould that results from an insured event — a burst pipe, a storm — but the line between “resulting from” and “pre-existing” is where disputes live.
What insurers look for
Evidence that the building was maintained. Evidence of what the mould situation was before the event. Evidence of a prompt, documented response after it. A building with a history of assessments and treatment is in a far stronger position than one without.
Premiums and renewals
A mould-related claim changes a building’s risk profile. Ongoing management — documented, scheduled, reported — is increasingly something brokers can put in front of underwriters at renewal.
The practical point
Whether or not a policy responds, the cost of a fast reduction treatment after a water event is small relative to the cost of the remediation that follows if nothing is done. Treat first, argue about coverage second.
This article is general information, not legal or insurance advice. Speak to your broker about your policy.