Insurance Requirements for Mold, Water Damage, and Restoration Businesses
- Feb 9
- 2 min read
Mold remediation, water mitigation, storm cleanup, fire restoration, and mold testing contractors all face high‑risk exposures that standard construction policies do not properly cover. Because contamination, moisture, and environmental risks can result in costly claims, restoration companies must meet strict insurance requirements from property managers, adjusters, GCs, commercial clients, and government contracts.
If you’re preparing for a mold remediation business insurance quote, here are the core coverages you’ll need in place to stay compliant, and protected.
1) General Liability (Required for All Restoration Firms)
General Liability (GL) covers third‑party injuries and property damage unrelated to professional or pollution exposures. Examples include:
Accidental damage to a customer’s floor while setting up fans
Injury to a building manager at the job-site
GL is required by landlords, property managers, and most restoration contracts. However, GL does NOT cover mold, fungi, or pollution exposures, which is why other coverages below are essential.
2) Contractors Pollution Liability (CPL) — Mandatory for Mold & Water Work
For mold remediation and water mitigation, CPL is required, because GL policies exclude mold, microbial matter, bacteria, pollutants, and Category 3 water losses.
CPL protects you from:
Mold contamination claims
Improper containment or remediation
Microbial growth after incomplete drying
Chemical misuse
Cross‑contamination
Most commercial clients require minimum limits of $1M per claim, though hospitals, schools, and industrial facilities may require $2M+.
3) Professional Liability / Errors & Omissions (Required for Testing & Reporting)
Any contractor offering:
Mold testing
Air sampling
Moisture mapping
Written clearance documentation
Expert opinions
must carry E&O. This covers claims alleging incorrect readings, flawed reports, or negligent inspection.
Testing + remediation on the same job increases requirements, E&O becomes mandatory.
4) Workers’ Compensation (Required if You Have Employees)
Restoration employees perform high‑risk tasks:
Confined‑space work
PPE‑intensive mold cleanup
Demolition & tear‑out
Water‑damaged building entry
Workers’ comp is state‑required and one of the biggest components of the insurance cost for a mold remediation contractor.
5) Contractors Equipment & Tools (Often Required by Contracts)
Air scrubbers, negative air machines, HEPA vacuums, dehumidifiers, and moisture meters must be insured for:
Fire
Theft
Transit losses
Job-site damage
Commercial clients often require proof your equipment is insured.
6) Commercial Auto (Required if You Travel to Jobsites)
Restoration contractors must insure:
Trucks
Vans
Trailers
Vehicles carrying equipment
Some clients require Hired & Non‑Owned Auto if employees use personal vehicles.
Get the Right Insurance Requirements for Your Restoration Business
Not every insurer writes environmental or restoration risks. Wexford Insurance partners with top‑rated carriers that specialise in mold remediation business insurance, ensuring you get the right coverage required to win contracts and stay protected.
👉 Request your Mold Remediation Business insurance quote from Wexford Insurance today and protect your crew, equipment, and customers.
