You sent your best crew member to tackle a “Level 4” hoarding cleanup, assuming your standard liability policy covered the risks. Three weeks later, she is hospitalized with Hantavirus from inhaling rodent waste dust, and her medical bills are already topping $150,000. You file a claim with your General Liability carrier, only to receive a denial letter stating that “Employee Injuries” and “Pollutants/Biohazards” are totally excluded, leaving you personally liable for her medical care and lost wages.
Key Takeaways
- General Liability ≠ Workers Comp: GL covers damage to the client’s house. Workers Compensation covers injury to your staff. You cannot substitute one for the other.
- The “Pollution” Exclusion: Most standard insurance policies classify mold, fungus, and animal waste as “pollutants.” Unless you have a specific “Biohazard” or “Environmental” rider, cleaning a hoarder home is an uninsured activity.
- Independent Contractor Myth: In 2026, the Department of Labor is using AI to audit “misclassified” contractors. If you control the job, that “contractor” is an employee for insurance purposes, and you are on the hook for their injury.
- PPE Requirements: If you didn’t document that you provided Hazmat suits and respirators, the insurance company (or state fund) can sue you for gross negligence even if they pay the claim.
The “Why” (The Trap): The Biohazard Gap
I’ve seen dozens of cleaning businesses go bankrupt over this. They buy a “Janitorial Services” policy because it’s cheap.
However, hoarding cleanup is classified differently—often under “Debris Removal” or “Hazardous Cleaning.” The trap is the Absolute Pollution Exclusion found in standard policies. Insurance carriers view mouse droppings, black mold, and ammonia build-up as “Pollutants.” If your employee gets sick from them, a standard policy denies coverage immediately. Furthermore, if you don’t have Workers Comp, you are breaking state law, which opens you up to criminal fines and personal lawsuits that pierce your LLC veil.
The Investigation: Insuring the Extreme Clean
I called three major carriers to see who actually covers disease transmission in hoarding situations.
1. The Hartford (Workers Comp)
- My Analysis: They are strict but reliable.
- The Clause: They cover “Occupational Disease” (like getting sick from a job site), which is vital here.
- The Requirement: You must classify your workers correctly. If you list them as “Clerical” to save money, The Hartford will deny the Hantavirus claim and audit you for fraud.
2. Next Insurance (General Liability)
- My Analysis: I checked their exclusion list for “Janitorial” class codes.
- The Verdict: While great for basic dusting, their standard policy excludes “fungi or bacteria.” If your worker gets sick from mold in a hoarder house, you are likely uncovered.
3. Specialty Risk (Crum & Forster)
- My Analysis: This is where you go for “Enviro” coverage.
- The Coverage: They offer specific “Contractors Pollution Liability” (CPL). This covers you if you accidentally spread the mold or if a worker gets sick from it.
Comparison Table: Hoarding Cleanup Risks
| Risk Scenario | General Liability | Workers Comp | Pollution Liability |
| Worker breaks leg on trash | No | Yes | No |
| Worker gets Hantavirus | No | Yes (Occupational Disease) | No |
| Client sues for mold spread | Denied (Pollution Excl.) | No | Yes |
[IMAGE: Screenshot of a policy ‘Exclusions’ page highlighting ‘Fungi, Bacteria, and Virus’]
Step-by-Step Action Plan
- Check Your Class Code: Look at your Workers Comp policy. Are you rated as “9014 (Janitorial)” or the higher-risk “Debris Removal”? If you are cleaning hoards under a janitorial code, you are underinsured.
- Buy Workers Comp: Even if you have 1 employee or use “contractors,” buy a minimal Workers Comp policy. It is the only shield against medical lawsuits from staff.
- Add Pollution Liability: If hoarding is more than 10% of your revenue, buy a “Contractors Pollution Liability” policy.
- Mandate PPE Logs: Require staff to sign a log confirming they received N95s and Tyvek suits. Upload this photo to your job management app every morning.
FAQ Section
Does my health insurance cover me if I’m the owner?
Maybe. But personal health insurance often excludes “work-related injuries” if they think you should have had Workers Comp. Check your policy.
Can I use a waiver for my employees?
No. You cannot ask an employee to waive their right to Workers Comp. That is illegal in almost every state.
What if the client didn’t tell me it was a biohazard?
You have the right to walk away. If you proceed, you accept the risk. Document the condition immediately with photos.