I charged a customer $800 to remove mold from a flooded trunk. I used an ozone machine and enzymes. Two weeks later, the mold was back, and the customer claimed they got sick from spores. They sued for a refund plus medical bills. My insurance denied it based on the “Fungi or Bacteria” exclusion.
Key Takeaways
- The Mold Exclusion: Almost every General Liability policy excludes bodily injury or property damage arising from “Fungi, Mold, or Bacteria.” You have zero coverage for mold-related lawsuits unless you buy a specific rider.
- “Failure to Perform”: Insurance covers damage you cause, not failure to do what you promised. If the mold comes back, that is a warranty issue, not an insurance claim.
- Pollution Liability: To legally and safely offer mold remediation, you need “Contractors Pollution Liability” (CPL) with a mold endorsement. This is expensive but necessary for hazardous work.
- Health Risks: If you disturb mold and spread spores through the car’s AC system, you are liable for the “cross-contamination.”
The “Why” (The Trap): Hazardous Materials
Mold is considered a biohazard. Standard detailers are not certified remediation experts.
Insurers know that improper mold removal just spreads it.
Therefore, they strictly exclude it to prevent detailers from acting like hazmat crews.
The Investigation: “I Called Them”
I asked about mold liability.
1. Standard Detailer Policy
- Result: “Fungi/Bacteria Exclusion” applies. Denied defense for the illness claim.
2. Pollution Liability Policy
- Result: Covered bodily injury from spore inhalation.
- Cost: ~$1,500/year minimum.
- Requirement: IICRC Certification (Mold remediation training).
Comparison Table: Mold Risks
| Service | Risk Level | Standard Insurance Coverage |
| Cleaning Spilled Milk | Low | Covered |
| Removing Surface Mold | Medium | Excluded |
| Flood Remediation | High | Excluded |
Step-by-Step Action Plan
- Stop Offering “Remediation”: Call it “Interior Deep Clean.” Do not use the word “Remediation” or “Guarantee” unless you are certified.
- Waiver: Have the customer sign a specific mold waiver: “We cannot guarantee complete removal of mold spores or prevent regrowth. Service is for cleaning visible stains only.”
- Refer Out: If a car is flooded, refer it to a restoration company (ServPro). Let them take the liability.
- Use Ozone with Caution: Ozone degrades rubber and plastics. Overuse can cause a “Property Damage” claim for brittle seals.
FAQ
Q: Can I just bleach it?
A: Bleach doesn’t kill mold roots in porous foam. It will come back.
Q: Does my Workers Comp cover me if I get sick from the mold?
A: Yes, Workers Comp generally covers occupational exposure to biohazards.
[IMAGE: Screenshot of a waiver clause: “No Guarantee Against Mold Regrowth.”]