Commercial insurance helps business owners protect their investment during specific events. However, numerous factors can cause financial strain, including mold damage. So, does insurance cover the cost of mold remediation?

Varieties of Commercial Insurance

There are several types of commercial insurance available to business owners in California, each covering different aspects of their operations.

• Liability Insurance: Liability insurance provides coverage if someone sues the company or gets injured on the property. However, it does not cover injuries to employees, as that falls under workers’ compensation.
• Property Insurance: Property insurance covers damage to the property, including the interior.
• Business Interruption Insurance: This type of insurance helps business owners stay afloat if they need to shut down their operations temporarily. For instance, it may be helpful if they have to close their shop for repairs.
• Natural Disaster Insurance: Insurance covers specific types of natural disasters. For example, hurricane insurance only covers damage from hurricanes, flood insurance covers damage from floods, and so on.

Whether an insurance company provides coverage often depends on the type of insurance policies you have. Many companies aiming to save money opt for workers’ compensation insurance (as it’s legally required) and basic liability insurance when working with Crown Reinas Insurance Agency, meaning that property damage isn’t covered.

Policy Exclusions

Policies often have exclusions regarding coverage. For instance, some policies specifically exclude coverage for mold unless it’s from a covered event, such as a burst pipe. Many exclude mold if it’s from a natural disaster, like a flood, because it’s the property owner’s responsibility to remove water as soon as possible.

Understanding what your policy covers is crucial to ensure you have coverage when needed. Experienced customer service representatives at Crown Reinas Insurance Agency can help you learn what your policy covers and other options you have for more coverage. Contact us today to learn more. We’re currently serving the California area.