Risk Mostly Modest

Most PMPs (60 percent) said the overall liability risks associated with termite control were modest, found the PCT 2022 Termite State of the Market survey, sponsored by BASF. The use of spray polyurethane foam (SPF) insulation in homes, however, continued to raise concerns in some markets.

SPF delivers energy savings when applied to crawlspaces and attics, but it also can hide termite activity and limit PMPs’ ability to conduct termite inspections. Forty percent of PMPs said SPF was sometimes encountered while performing termite inspections, and 57 percent said each situation determined whether or not they provided termite service at these homes.

In 2021, National Exterminating cancelled 40 termite warranties due to foam insulation and was hired by 25 homeowners to cut inspection gaps in crawlspaces covered in foam. “Unfortunately, that’s a growing part of our business in order to keep people’s termite warranties,” said Scott Monds, general manager, National Exterminating Company, Newport News, Va.

To reduce liability for termite service, PMPs said it was essential to perform thorough inspections and provide a service proven to deliver results.

“We’re not going to offer you something that in our experience we know is not going to work,” said Troy Hook, termite service manager, Green Flash Pest and Termite Control, Vista, Calif. For example, his team won’t spot treat rafter tails for drywood termites when it’s very likely the pests are in the walls or attic, which requires fumigation or opening walls for visual inspection, he said.

Two thirds (66 percent) of PMPs said their companies did not offer termite damage warranties. In Arkansas, however, 80 percent of termite policies must include damage repair.

“It’s a tough place to do business when you’ve got that many damage replacement warranties out there,” said Dwight Howard, operations manager of The Bug Man in Little Rock, Ark. This “absolutely” affects the price of jobs, and “it puts a lot more responsibility on us,” he said. “I often think how easy it would be to be in the termite business when all your accounts are ‘no damage,’” Howard added.

Fifteen percent of pest management professionals said they have been sued by a customer for termite control service failure.