Fungi or Bacteria Coverage Question

Our insured is a pest control business. Endorsement CG 24 25, limited fungi or bacteria coverage, is attached to the insured's CGL form and the question we have is this: does this endorsement cover the insured's exposure for the mold work he performs?

The insured will tear out and treat mold ridden areas of a home or business. Does CG 24 25 provide coverage for the insured for the work he does to contain, treat, and neutralize mold? If the insured completes his work and then the mold comes back in a month or so, will he have coverage for a claim made against him?

Pennsylvania Subscriber

CG 24 25 will provide liability coverage for the insured is a claim is made against him for bodily injury or property damage based on the inhalation or ingestion or contact with or exposure to mold (that is, fungi) or bacteria within a building or structure. So, if the insured treats a house and then down the road, the insured is sued because the mold comes back and causes a health issue, the endorsement will provide coverage.

Now, there is no coverage for re-doing the insured's work, that is, correcting the previous work. The endorsement only applies to claims for BI or PD and does not apply to any expense or costs to do any remediating or correcting any previous negligent work on the part of the insured.

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