Focuses on Mold and
insurance repercussions were a hot topic
at this yearís Carolinas Lathing and
Plastering Contractors Association.
Speaking on the topic was Jim Byrd, of
the South Carolina Department of
Insurance. His presentation was humorous
Byrd said combating mold and fraud
requires knowledge and a proactive
approach. Fear, media hype and
profiteering are a three-pronged nurturer
of this ongoing crisis. But why now, when
mold is as old as life?
We are at the tail end of the asbestos
claims and some people are seeking a new
money source Byrd said.
A contractors insurance rates are based
on the frequency and severity of claims
in a particular field. The higher the
number of claims, the higher the
insurance rate-after all, the insurance
companies must charge enough to be
profitable. This means charging more than
paying in claims.
The general abuse of the tort system
creates the ideal environment for mold
suit Byrd added, referring to the overall
greed that drives people to legal action.
In addition, insurance carriers know
nothing about you except the losses and
claims in your industry.
Other contributors to fraud and abuse
include abusive practices by mold
remediation services and unscrupulous
policy adjustors. Also, itís often
cheaper to pay a settlement than to fight
a claim in court.
Byrd recommends continuous education
about these issues, establishing a
relationship with legislatures and simply
doing homework. Byrd commended CLAPCA for
being proactive in all these areas.
Courtesy of CLAPCA