Moldy Water Keep on Rollin’: Mold Exclusion Does Not Apply to Claims Based on Mold-Infested Water

In Acuity v. Reed & Associates of Tennessee, LLC, 2015 U.S. Dist. LEXIS 109412 (W.D. Tenn. August 19, 2015), the United States District Court for the Western District of Tennessee determined that an insurer had the duty to defend its policyholder in a case involving mold, even though the subject policy included a Fungi or Bacteria Exclusion (“Mold Exclusion”).  The court found that allegations of moldy water fell within an exception to the Mold Exclusion as a “product” or “good” “intended for bodily consumption.”  …

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