Managing termite claims and insurance requirements

Today’s liability environment features an increasingly active plaintiff’s bar that sometimes cultivates distrust of businesses and insurance carriers. When they succeed in swaying a jury, the results can include substantial judgments and punitive damages that can exceed reasonable compensation.

For the modern pest management professional, insurance is not just a line item — it is a vital component of business survival. Understanding the intersection of legal defense and policy requirements is essential to protecting your revenue.

Key takeaways

• Report claims promptly: Coverage may be jeopardized by not reporting potential claims as required by the policy, including strict deadlines.
• Monitor emerging risks: Artificial intelligence is now playing a role in shaping customer expectations regarding company obligations, creating additional exposure for PMPs.
• Consult the experts: Your insurance agent is a critical partner in wading through policy complexities and ensuring you remain in compliance with coverage terms.

The role of insurance and AI

Insurance is vital for PMPs. Knowing the terms and coverage of your policy is essential and your insurance agent can help wade through the complexities. However, a new factor is complicating this landscape: Artificial intelligence.

AI is now playing a role in shaping customer experience, often providing information and expectations about consumer rights and company obligations. This creates additional exposure for insureds as customers may enter agreements with preconceived — and sometimes inaccurate — notions of what a termite provider is legally required to do. Staying ahead of these shifting expectations is key to managing your professional risk.

Protecting your coverage

A common mistake that can lead to financial ruin is the failure to communicate with your carrier. Remember, coverage may be jeopardized by not reporting potential claims as required by the policy, including specific deadlines.

Even if you believe a claim is meritless, the “mere presence” of termites is often used by plaintiff lawyers to argue for strict liability. By involving your insurer early, you ensure that you have the professional defense necessary to argue the facts: that a treatment today won’t eliminate termites instantly and an inspection is not a guarantee of a future pest-free environment.

Quality evaluation as a defense

Taking these technical and administrative tips seriously will reduce company liability and lead to yet another successful year. Just a little quality evaluation effort will have significant benefits for years to come. By treating every service with the meticulous care required for a wood-destroying organism (WDO) inspection, you create a culture that is naturally resistant to claims and legal challenges.

Continue your liability training

• The paper trail – How to document site conditions and treatment gaps
• Technical walkthrough – High-risk areas and WDO reporting
• The essentials – State regulations and label adherence
• Back to hub – Protecting your termite revenue: The full guide