Pollution Exclusion Doesn’t Bar Mold Coverage

A pollution exclusion doesn’t bar insurance coverage for injuries to office workers from mold in their workplace, an Illinois appeals court ruled (In re Liquidation of Legion Indem. Co., 2015 BL 371327, Ill. App. Ct., 1-14-0452, 11/10/15).

The exclusion doesn’t apply under Texas law because the policy doesn’t mention “mold” or “fungi,” the Appellate Court of Illinois, First District said Nov. 10.

Coverage attaches because the plain language of the policy doesn’t specifically exclude mold related claims, the court said.

The dispute stems from an underlying negligence action filed against D. Reyna Construction Inc. related to toxic ...