When Mechanical/HVAC contractors hire subcontractors to do work such as electrical, plumbing, or remodeling and construction, they run the risk of being held responsible for pollution conditions stemming from the subcontractors work.

Many claims faced by Mechanical/HVAC contractors stem from disturbing asbestos, lead, or existing mold within the structure while work is being performed. This can manifest itself in many ways, including odors, ill employees, or staining and damage to walls and fixtures. Obviously the contractor will require the sub to carry his own insurance, and name the contractor as an additional Inured. While flattering, it creates a coverage issue for many of these risks. Malfunctions arising from these changes create a direct professional responsibility for the contractor.

HVAC firms have growing professional exposures. If the basis of the claims is the toxic nature of the contaminant, pollution exclusions are often cited.

Job site pollution caused by contaminants the contractor brings to the site. Making these conditions worse by spreading the contamination can lead to significant liability on the part of the contractor. While they are traditional contracting risks, they have become the focus of growing pollution and mold related claims over the last several years. If the subcontractor causes a pollution condition, and his environmental coverage is inadequate, the Mechanical/HVAC contractor may have to defend himself against claims relating to work for which they were responsible due to hiring of the sub. For contractors that may need to outsource certain parts of a job, the exposure can be significant. The release of these materials, or their improper disposal, can lead to pollution claims. One of the unfortunate drawbacks to installation problems with HVAC systems can often be excessive moisture, either in the form of condensation or actual leaks. This can range from doing all of the design work for the project, doing some design work relative to an aspect of the HVAC system, or simply having a perceived responsibility to comment on design aspects they know to be poorly developed.

Mold growth is generally caused where moisture, a food source, and an acceptably warm environment meet. When these allegations lead to Bodily Injury, Property Damage, or Business Interruption, the claims can become sizeable. Exacerbating the problem is the trend of holding these contractors to a higher standard than many other trades, in effect giving them a professional liability exposure. HVAC and Mechanical Contractors have two primary areas of concern: contracting services creating environmental problems and growing professional exposures.

Contracting services can create environmental problems in the following ways:

Installation leads to hazardous indoor air quality. The last element is the most difficult to control and manage for HVAC aluminum bending suppliers firms.

Many Mechanical/HVAC contractors use equipment powered by generators, requiring fueling.

Additionally, the proper selection and supervision of subcontractors is a professional exposure most contractors share that is generally excluded from CGL and basic CPL policies.

The operations of subcontractors for which the contractor is responsible. Many firms provide true design services as part of their corporate profiles. These firms are now being expected to not only install the equipment properly, but to consult on its design and identify potential problems with anothers design as well.

One of the biggest environmental concerns faced by Mechanical/HVAC professionals is the allegation that their work has led to an unhealthy indoor environment. HVAC contractors are also often presented with installations that do not work exactly as planned. In these situations, contractors will often tweak the specs while at the jobsite to make the system work.HVAC and Mechanical Contractors are faced with a unique challenge in todays insurance market. This can take the form of asbestos wrap on piping, lead paint on windows and doors, or mold growth that existed prior to the work.

It is important to remember that while addressing Contractors Pollution and Professional Liability are important, the key for this class of business is to address Mold at the same time.

Job site pollution caused by the contractor disturbing existing conditions. There are very few products that combine all three elements, so knowing how to get the appropriate coverage for your insureds and covering all bases is crucial to keeping them protected. This moisture, matched with wood or wall board and warmth, leads to mold. Most mold claims are excluded from CGL policies.

. They also regularly use solvents, acids, glues, and other toxic substances at the job.

Installation leads directly to mold growth