Common Mistakes That Increase the Insurance Cost for Mold Contractors
- Feb 9
- 2 min read
Mold remediation, water mitigation, storm cleanup, and fire restoration firms operate in high‑risk environments. Because exposures involve microbial contamination, Category 3 water losses, demolition, contents handling, testing and reporting, the insurance cost for a mold remediation contractor can climb quickly. The good news: many premium increases stem from avoidable mistakes. Fix these issues and you’ll strengthen your mold remediation business insurance program while improving pricing over time.
1) Relying on GL Alone (No Contractors Pollution Liability)
Standard General Liability (GL) forms often exclude mold/fungi and pollution. Contractors who skip Contractors Pollution Liability (CPL) face coverage gaps, and underwriters price the risk higher. Always carry CPL with limits aligned to your job mix (schools, healthcare, industrial sites may require higher limits).
2) Weak Documentation of Remediation Protocols
Carriers want proof of risk control. Missing or inconsistent records, like containment procedures, negative air logs, PPE training, moisture mapping, drying logs, and clearance documentation, signal elevated loss potential. Organise these documents and keep a sample set ready for underwriters.
3) Testing and Remediation on the Same Job, With No E&O
If your firm performs mold testing/sampling and remediation on the same project, most insurers view it as a higher‑risk conflict. Doing so without Professional Liability (E&O) is a pricing red flag. Either separate the services or maintain E&O with clear scope language and report retention.
4) Poor Subcontractor Controls
Using subs without enforcing Certificates of Insurance (COIs) can spike your premium, or disqualify you from preferred carriers. Require and track:
GL with Additional Insured, Primary & Non‑Contributory, Waiver of Subrogation
CPL for any sub who touches mold/water/chemicals
Workers’ Compensation for labour subs
Written contracts with hold‑harmless/indemnity clauses
5) Inadequate Equipment Security and Maintenance
Air scrubbers, negative air machines, HEPA vacs, dehumidifiers, moisture meters, and thermal imagers are frequent loss targets. Lack of serialised inventories, locked/alarmed storage, vehicle lock‑up protocols, calibration and PM logs leads to theft and breakdown claims, raising future premiums.
6) Fleet Oversights That Drive Up Auto Rates
Commercial Auto is a major spend. Skipping MVR checks, telematics/dash cams, load‑securement training, or vehicle maintenance logs increases accident frequency, and your rates at renewal.
7) Incomplete or Late Claims Reporting
Slow or poorly documented claims create higher indemnity and litigation costs. Standardise work authorisations, photo documentation, moisture logs/psychrometrics, containment records, and clearance reports, then report claims promptly.
8) Choosing the Wrong Deductible/Limit Strategy
Cutting limits to save dollars is risky, and can be catastrophic on CPL/E&O claims. A better tactic: keep strong limits and consider modestly higher deductibles on property, inland marine, or auto where cash flow allows.
Get Lower Costs, Without Sacrificing Coverage
Not every insurer understands environmental and restoration risks. Wexford Insurance partners with top‑rated carriers that specialise in mold remediation business insurance, helping you set the right CPL/E&O limits, optimise deductibles, tighten sub controls, and present best‑in‑class safety documentation for competitive pricing.
👉 Request your Mold Remediation Business insurance quote from Wexford Insurance today and protect your crew, equipment, and reputation.
