The facts

A mechanical contractor was replacing equipment on the roof of a hospital, which required temporary waterproofing work to ensure its protection during the project. During the waterproofing work, there was an accidental blockage of a drain, and after a heavy rainfall, the blockage resulted in water entering the building.  

Subsequent to the water infiltration, walls and ceilings containing asbestos had to be opened and removed, and certain areas of the hospital had to be evacuated due to the presence of asbestos in the affected structure.

The result

The total cost of the claim was approximately $150,000. Fortunately, the contractor had purchased a Victor Pollution Liability Insurance for Contractors (CPL) policy.

Risk factors

Risk factor #1

Typically, only asbestos and mould abatement contractors believe they have a mould or asbestos exposure. While these contractors are more susceptible to these types of losses, virtually all contractors can be subject to a mould or asbestos claim. 

It’s important to note that asbestos was used in thousands of building materials in the past, and many of these materials are still present in buildings today. One of the main benefits of a Victor CPL policy is that it does not contain an asbestos exclusion. 

Risk factor #2

Water can infiltrate a building in many ways and, if not addressed, can ultimately lead to mould growth. It is important to ensure that mould is also included in the policyholder’s CPL coverage. Mould is an optional coverage that can be included in a Victor CPL policy.

Risk factor #3

A pre-construction survey or a building condition assessment that identifies potential areas of concern for asbestos or mould contamination is a good risk management tool for contractors who are performing renovation or maintenance work to an existing building. 

*This claim scenario is for illustrative purposes only. Please remember that only the insurance policy can give actual terms, coverage, amounts, conditions and exclusions.