Managing Mould- Countering costly claims

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An indoor health hazard that’s already cost U.S. Industries billions of dollars in litigation and employee disability claims, is the target of a national task force into the prevention of similar risks in Canada.
  The Canadian Construction Association (CCA) has created a National Mould Task Force to investigate and assess the various issues regarding mould contamination and its effects on the construction industry. 
 
During a recent Forum on Hazardous Building Materials, contractors, environmentalists and building owners were warned that mould is surfacing throughout North America  as one of  the leading indoor health hazards of the new millennium, and that US companies are already feeling the pinch of numerous class action and workers’ compensation claims.
  “Things have to change in Canada.  We have to keep out of the court room,”  said task force Chair Lionel Neveu during a lunch time address at the Forum held in Calgary recently.
  “We must mold our ideas and come up with a consensus. We must come up with a standard.”
  Nevue, who is the health and safety director for PCL Construction in Edmonton, explained how Mould has damaged  property and has posed serious health risks on building inhabitants and workers.
  He said the Task Force is developing voluntary guidelines and standards for building contractors  which might counter Mould and the health  problems it can create.
  Nevue  admits it is a formidable task, but one that must be undertaken to protect employers and their workers. “We need to get everyone on the same page with this,” he said.
  
The main objective of the Task Force is to draft advice for the construction industry on its effective management of mould issues, including prevention practices, how to conduct mould assessments, and remediation  protocals.
    In addition the Task Force is to provide information on legal and insurance implications, mould sampling/testing, and other resources whish are available to its stakeholder. The Task Force will make its research information available through documents and training workshops.
 
What are Moulds?
  Mould is the common name for fungi often seen on wet building materials and are in the same kingdom as wood rot and sap-stain fungi. There are a few dozen species of moulds often found on building material. Mould spores are present in outdoor and indoor air and on all surfaces. The health effects of Mould exposure can be serious.
  About 10% of Canadians are allergic to moulds in outdoor air and suffer hay fever. Exposure to airborne fungal spores or spore fragments growing on building materials can result in asthma and related allergic diseases; increased rates of upper respiratory disease; nose, throat or eye irritation; skin rash etc.
  There were more than 10,000 insurance claims in the US in 2001, with millions of dollars pending in litigation.
  Don Jackul, Vice President of PHH Environmental, says Mould has overtaken asbestos as the leading occupational health hazard involving indoor air quality. “The challenge we face now is how to manage abatement,” he told Forum delegates during a morning workshop. “It’s no longer simply a safety issue- it is now an environmental management issue and a legal issue.”
  The increase in claims and costs can no longer be ignored by industry leaders, Jackul  noted.
 
Though insurance claims in the  US have skyrocketed the past few years, similar claims in Canada are only now beginning to create attention for the issue of toxic  mould.
1. In Year 2000, the Province of Ontario paid out $40 million in grants to school boards to correct “mould contamination problems” in schools.
2. In June 2000, the Courthouse in Newmarket Ontario was closed while they removed almost all of the walls and ceilings in this 165,000 square foot facility in order to remove “mould.”
3. More recently, the Alberta 'Court of Appeal' building in Calgary was forced to temporarily
relocate their premises to Edmonton as a result of “toxic mould infestation.” Early reports suggested that two thirds of the staff were experiencing “mould-related” health problems.
4. British Columbia has seen claims and lawsuits involving construction defects that have led to
“leaky condominiums.” Allegations have been made about “mould issues.” (Source: Crawford Adjusters)
  The above are just a few examples of mould related losses in the Canada. It is a certainty that there will be a dramatic increase in insurance claims and litigation in this area. In May 2002, The Insurance Bureau of Canada announced that it was forming an “Advisory Group” to provide
recommendations to their member companies on many of the issues that have arisen in recent months.
  For more information contact the CCA at 1-613-236-9455 Fax: 1-613-236-9526