Employees are hospitalized after installation of new carpets

Source: AXA XL Environmental
A GC installed new carpeting in an office building. One week after installation, the building owner informed the contractor that employees were complaining of headaches and dizziness. This was attributed to the odors from the new carpets. The general contractor could not prove that the manufacturer of the carpet
or the carpet adhesive was responsible; thus, the contractor was left with the claim. The GC filed a claim with their general liability carrier. The claim was denied due to the fact that “hazardous materials” such as formaldehyde and volatile organic compounds associated with the carpeting and adhesives are pollutants.

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