From time to time we like share claims that we encounter with our restoration insurance clients. Our hope is that by sharing the information and details around the claim, we can help others avoid similar claims.
Scenario: A restoration contractor was hired to perform water and mold remediation at an apartment building. Following the completion of the work, a tenant of the building sued the property management company, as well as the contractor, due to illness resulting from the presence of mold. This was after the tenants were told it was safe to re-enter their apartments.
Damages: Resulting damages from the claim and defense costs were $71,000.
Lesson: For any issue related to the mold, it is highly recommended an expert sign-off on the complete removal of the substance before occupants are allowed to return. It doesn’t hurt to bring in a 3rd party to verify that all remnants have been removed.