PEST CONTROL CLAIMS SYSTEMS By Thomas Nolan, President & General Adjuster, Nolan & Company, Inc. As part of the Pest Control Claims Systems seminar, we will go through all of the following Topics. As with all seminars, those attending will relate a topic to an ongoing adjustment. If anyone attending has a question or wants to relate an issue on a current claim for discussion, I encourage you to speak up at any time.

What constitutes a Pest Control related claim What constitutes a Pest Control related claim. Failure to prevent wood destroying organism infestation

Improper inspections yearly or for the transfer of real estate

Improper use of chemicals or other pest eradication methods

Improper fumigations

Dehumidification Fires Improper maintenance of equipment resulting in damage, from water, smoke or fires.

Pest Control Claims Powder Post Beetles Old House Borer (wood boring Beetles) also Bees and Wasps. Termites , (Eastern Subterranean Termites, Formosan Termites, DryWood Termites, Dampwood Termites Carpenter Ants Water conducting Fungi (Poria Incrassata and Merulius Lacrymans) Water Damage Mold Bed Bugs, Fleas, Spiders, Ants, and other household pests.

Improper use of chemicals, baits, or Injuries to individuals or pets due to improper use of pesticides or baits

The difference between Pest Control Termite Control Moisture Control Rodent Removal

The Coverage: What portion of the policy will respond to the reported claim? Is the claim for negligent treatment or a negligent inspection or both? The date of the last treatment before the reported claim? Date of treatment? (pre-treatment or a post-treatment? Was a waiver issued for any treatments? Did you report any prior damage or infestation? Did you provide any official Wood Destroying Organisms reports? If so when and why? What type of treatment did you do. (soil treatment, bait system, direct application or fumigation)

Claim identification continued What type of property does the claim involve? Is it brick, stucco (hard coat or synthetic), wood, siding, vinyl. What type of foundation, (slab, crawl space, elevated, etc.) How old is the property When did the you or customer identify the reported problem and how? How were the problems discovered? (Renovations, alterations, storm or fire claim, termite swarmers)

Claims trigger. The date of the loss Did the discovery occur within the policy? Did the insured identify any prior problems in the same areas or any part of the property? When did the insured treat for the problem Did you inspect every year?? How did they treat for the problems? (spray, bait or other type of treatment) Any prior claims or repair at the property?

Date of loss Is the loss due to termites Or water damage

Date of loss Construction defect Storm loss

Date of loss Determining the date of the loss will require the review of all the record from the insured. It may also include the review of the records from the claimant regarding the sale or prior inspections of the home. The date of loss may involve both the treatment issues and inspection issues.

Treatment Related Claims All treatment documents, including the outside of the file jacket, computer notes, telephone logs, contracts Any repair estimates or bills Any photographs Any drawings Letters of representation Any state filings, reports, citation Any prior or current citations for treatments by the state Enforcement history for the insured or designated licensed PCO

Coverage for Treatment for WDI

MISAPPLICATION / CONTAMINATION RELATED CLAIMS: Date of the application Date of the request for the treatment Method of the application (drilling, injection, baiting, etc) Type of chemical (baits, liquid, etc) The concentration of the chemical (mixture rate) Who mixed the chemical and location

MISAPPLICATION / CONTAMINATION RELATED CLAIMS: Type of treatment (termites, pest control, rodent control) Product label and MSDS sheet for the product Is the manufacture on notice of the alleged misapplication Has anyone attempted to clean up the areas (who, when, how) If the application involves a waterway The owner of the waterway or property Type of waterway (lake, river, estuary) Method of contamination (pipe, runoff, etc) Any animals involved (dog, fish, birds)

MISAPPLICATION / CONTAMINATION RELATED CLAIMS: If the application involves animals: Type of animal (pedigree, species etc) Age of the animal Purchase price of the animal Owner of the animal Type of contamination Any treatment for the animal Date and location the animal’s first sign of illness Any veterinarian bills (and contact information)

MISAPPLICATION / CONTAMINATION RELATED CLAIMS: Has the local licensing departments been notified The address of the owner, verification of the property ownership The property owners complete name; is the property part of an association or is it managed by a property manager All contact information for the owners, e-mail, telephone, facsimile numbers Any tenant or management contact information

MISAPPLICATION / CONTAMINATION RELATED CLAIMS: With any misapplication related claim, be sure to place the chemical manufacture on notice as they may want to get involved in the investigation, provide information on the cleanup and may want to be involved in the cleanup. In all misapplication claims involving injuries, consider getting the approved HIPPA medical authorizations from the injured parties. Once obtained, you will need to get the blood work testing to determine the extent of the alleged contamination. As each chemical has specific spill protocols, please review the MSDS (Material Safety and Data Sheet). In most cases, you can just type the name of the chemical into your browser. That will take you the manufacture and download the MSDS sheet, instructions, and product label into the file system.

REPAIR RELATED CLAIMS: Many pest control operators also operate repair divisions, or hire contractors to do repairs. Some cases arise from those operations. If you discover that the claim is related to REPAIRS by the insured, you should consider obtaining the following.

CONCLUSION: We hope that this information gives you a better understanding of PCO related claims. If you have questions, or claims you want to discuss, please call at any time. Please feel free to visit nolanandcomapny.com for more photographs of damage claims handled by Nolan & Company, Inc. Thomas S. Nolan 843 693 7604 Cell