Work Authorization Differences

The mold-specific language you need to protect yourself when working on jobs with coverage limits

Work Authorization Basics

A contract between you and the customer

Gives you permission to perform work
Gives you permission to bill their insurance
Must be signed before you start work
Includes scope, pricing, payment terms, AOB

That foundation applies to mold work too - but mold needs more

What's Different for Mold?

Your mold work authorization needs 5 additional elements

Coverage Limit Acknowledgement
Protocol Compliance Statement
Clearance Requirement Acknowledgement
Health Disclosure Language
Scope Limitation Clause

ADDITION 1

Coverage Limit Acknowledgement

"Customer acknowledges that mold remediation coverage under their insurance policy is limited to $[amount]. Customer has verified this limit with their insurance company or agent."

"Work performed that exceeds the coverage limit is the responsibility of the customer. Customer agrees to pay any amounts not covered by insurance within 30 days of invoice."

Why This is Critical

Coverage Limit

$10,000

Your Work Cost

$18,000

Customer owes you $8,000
Get that in writing up front

Leave dollar amount blank until verified, or write "Limit to be verified"

ADDITION 2

Protocol Compliance Statement

"All mold remediation work will be performed according to the protocol provided by a third-party testing company. Scope of work is limited to protocol specifications."

"Any work outside the protocol scope requires written amendment from the protocol author and written approval from the customer before proceeding."

Why This Protects You

Scenario: Protocol says remove drywall in bathroom only. Later someone claims you should have done the bedroom too.

                Your authorization makes clear:

                Your scope was protocol-limited

ADDITION 3

Clearance Requirement Acknowledgement

"Customer acknowledges that mold remediation requires third-party clearance testing before work is considered complete. Remediation contractor cannot self-certify completion."

"Clearance testing is performed by [IEP/IH company name or 'TBD']. Cost for clearance testing is [included in estimate / billed separately / customer responsibility]."

This Sets Expectations

No Clearance

= Job Not Done

Testing

= Has Costs

Customer understands both realities before you start

ADDITION 4

Health Disclosure Language

May be required by your state - good practice regardless

"Customer acknowledges that mold may pose health risks to occupants. Customer is advised to consult with a physician if any occupant has health concerns related to mold exposure. Remediation contractor does not provide medical advice."

This limits your liability for health claims

ADDITION 5

Scope Limitation Clause

"Work authorized under this agreement is limited to mold remediation per protocol. Additional mold discovered during remediation requires protocol amendment and additional authorization before work proceeds."

"Remediation contractor will notify customer of any additional mold discovery before performing additional work."

This prevents scope creep disputes

State Disclosure Requirements

Some states have specific disclosures required for mold contractors

State license information
Health risk notifications
Right to cancel within certain period
Proof of insurance
Certification disclosures

Check your state's requirements. Failure to provide required disclosures can void contracts or create licensing problems.

Create a Disclosure Packet

Have customers sign acknowledgement they received all disclosures
Document the date
Document their signature
Document what was provided

This protects you legally

The Coverage Limit Conversation

The most important conversation in mold work

"I've verified your mold coverage and your policy has a $10,000 limit. Based on the protocol, the estimated remediation cost is approximately $18,000."

"Insurance will cover up to $10,000. The remaining $8,000 would be your responsibility."

"Before we proceed, I need you to acknowledge this in writing. Are you prepared to cover the difference if insurance pays only up to your policy limit?"

Document Their Answer

If They Say Yes

Note it on authorization:
"Customer acknowledges estimated out-of-pocket of approximately $8,000"

If They Say No

Don't start work.
Wait until you have a clear agreement.

Never surprise a customer with a large bill after the work is done.
Have this conversation before you set up containment.

Key Takeaways

Coverage Limit Acknowledgement - Customer knows their limit and responsibility
Protocol Compliance Statement - Scope is protocol-limited
Clearance Requirement - Third-party testing required
Health Disclosure - You don't provide medical advice
Scope Limitation - Additional discovery requires new authorization

Don't Forget

State Disclosures

Provide required disclosures and document that you provided them

Coverage Conversation

Have it before starting work - get acknowledgement in writing

                Download the Mold Work Authorization Addendum template from the resources section
            

Module 1 Complete!

You now understand:

Mold insurance coverage and sublimits
Third-party testing requirements
Mold-specific documentation
Work authorization differences

Coming Up: Module 2

Xactimate - the HMR category, mold-specific line items, and building estimates that get paid within coverage limits

Your Action Item

                Update your work authorization form with the mold-specific additions we covered.
                
                Have it ready before your next mold job.

I'll see you in Module 2.