While increases in insurance premiums have negatively affected commercial contractors, the single-family home construction sector has been hit the hardest, with increases of up to 400 percent. In areas where mold is a major problem, such as in the Northwest, premiums have skyrocketed. Some of the largest residential contractors in the Northwest are paying more than $1 million annually for coverage.
According to many builders, the steep increase in the cost of liability insurance is the direct result of mold and “sick-building syndrome” complaints. Some in the insurance industry say the mold situation could lead to more insurance losses than asbestos claims.
The book “Construction Law and Risk Management: Case Notes and Articles” published by the Construction Risk Management Portal and Library, is a good source of information about construction liability. To read more about the book, or find a listing of lawyers specializing in construction-related cases in your state, click on the link to the right.