Over the past several issues of The Summit, Beacon Hill Associates has been able to touch on all sorts of environmental concerns many of our insured’s may encounter during the normal course of their operations.  From the importance of including Non-Owned Disposal Site coverage to protect against improperly disposed waste, to understanding how a PFAS (Perfluoroalkyl and Polyfluoroalkyl Substances) exclusion could potentially result in claims being declined for specific manufacturing risks. Today we will discuss mold, more specifically, how mold impacts senior care facilities.  

While mold can be present just about anywhere moisture is allowed to accumulate, the overall impact of mold can vary depending on an insured’s location. For instance, a mold outbreak in a warehousing storage facility may result in property damage and require remediation. However, as there may be very few people accessing the warehouse on a regular basis, there is a much lower risk of bodily injury. 

This why understanding your specific insured and their operations is paramount. When looking at senior care facilities, they have a similar mold exposure to that of apartments, in terms of the increased chances of bodily injury due to prolonged exposure to mold spores. However, senior care facilities are at an even great risk of bodily injury due to the age and overall health of many of the residents having pre-existing health issues or compromised immune systems. Mold spores can exacerbate respiratory issues such as asthma, bronchitis, and allergies. Scientists and behavioral specialists have even begun tracking how long-term exposure to mold can also impact overall cognitive functioning in seniors citizens, including memory loss and equilibrium disruption.

Even though we are focusing on senior care facilities, that does not mean that only the residents need to be concerned with exposure to mold spores. The nurses and staff at these facilities are often exposed to the same irritants as the residents. So, in addition to potentially having a pollution claim, a senior care facility may now have a Workers Compensation claim for unsafe working conditions.

Understanding the risks associated with mold exposure is of immense importance. The next step is understanding steps that need to be taken in order to mitigate the exposure to mold. Routine property inspections with a focus on moisture control is key. Windows, roofing, and plumbing are all key areas of concern. However, as mold can grow behind drywall and flooring, simple site inspections may not be enough.  In the event that your senior care facility does have a mold outbreak, a Premises Pollution Policy can be a huge benefit when it comes to remediating the mold and paying for bodily injury claims. 

Premises Pollution Liability is designed to provide coverage for unknown, historical environmental liabilities as well as unknown, future environmental liabilities. Policies are structured in many different ways, but common elements of the coverage can include:

• Third Party claims for Bodily Injury, Property Damage and Environmental Damages at, on or emanating from the insured site.
• Cleanup costs for pollutants discovered at the insured site.
• Emergency response expenses.
• Business Interruption resulting from pollution events
• Claims arising at non-owned disposal sites utilized by the insured
• Claims related to the transportation of waste materials from the site

In addition, some carriers endorse their policies to provide even more enhancements, including:

• Disinfection expense costs for response to CDC required cleanups.
• Image restoration expenses
• Patient relocation and temporary housing expenses
• And more…

For more information about senior care facilities, or to discuss a specific account, please contact us.

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 Sources:

https://www.sciencedirect.com/science/article/abs/pii/S0889159119303010?via%3Dihub

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7231651/