In the state of New York, insurers found one way to deal with rising claims for mold damage. From about 2003 onward, “virtually all property and liability policies have contained mold, microbial matter, or fungus exclusions,” according to John Cofini writing on the Milbrandt Insurance blog. He cautions that those taking out construction insurance coverage should be aware of what their policies cover or fail to cover, especially as “mold claims by commercial developers and homeowners routinely exceed $100,000, and some are in the millions.”

Mr. Cofini recommends supplementing coverage with a pollution legal liability (PPL) or contractors pollution liability (CPL) policy. Additionally, contractors should insist that any subcontractor whose work involves water should carry their own CPL coverage.