Mold damage can be costly and disruptive for any business. However, whether an insurance policy covers this type of damage depends on the cause and the specific language in the policy.
Insurance providers may deny claims for mold, especially if they believe the mold came from long-term neglect. However, there are steps a business owner can take to show that the policy does cover the damage.
Review the cause of the mold
The cause of the mold plays a key role in whether a policy will cover the damage. Many business insurance policies exclude mold caused by maintenance issues or long-term leaks. However, if the mold grew after a covered event, such as a burst pipe, storm damage or fire suppression efforts, the claim may be valid. Proving that the mold developed because of one of these sudden events may help establish coverage.
Understand the policy exclusions and endorsements
Most commercial property insurance policies contain exclusions for mold. However, some policies include mold coverage through endorsements or added provisions. These sections may allow coverage under specific conditions. It is important to read the entire policy, especially the fine print that describes exclusions and exceptions. Endorsements that list fungi, bacteria or mold coverage may limit the amount or type of loss the insurer will pay for.
Provide clear evidence of the damage
Document the damage as soon as you discover it. Photographs, inspection reports and written records of the cause can support the claim. Include repair invoices and cleanup costs that link directly to the source of the mold. This documentation shows that the mold is a direct result of an insured event rather than long-term wear and tear.
Show prompt reporting and action
Wisconsin insurers may argue that a delay in reporting or repairing a leak caused the mold. To avoid this issue, report the problem immediately and take steps to stop further damage. Showing that the business acted quickly and responsibly may help prevent a claim denial.
Mold claims can be complex. Proving that the damage came from a covered event and not neglect is key. With strong documentation and a close reading of the policy, Wisconsin business owners can make a stronger case for coverage.