CLAPCA
2002 Focuses on Mold and Insurance
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 and informative.
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