There is a constant increase in suits and claims against property managers. It is becoming increasingly difficult to stay out of court and defence can
There is a constant increase in suits and claims against property managers. It is becoming increasingly difficult to stay out of court and defence can easily end up costing over $100,000, which is a lot. Protecting is necessary but what type of insurance should be used by property management companies? There are so many options available that choices are difficult to make.
In order to make the choice simpler, deacon.co.uk highlights the following as being the most important policies needed by a property manager.
General Liability Insurance
This is mandatory when clients visit your office or when you visit them. It offers coverage for the claims made in the event that property is damaged or someone is hurt while on your property, as long as it is determined it is your fault.
Such protection is very valuable for all property management companies because a simple slip can lead to on-site injuries. If this happens, a lawsuit is almost guaranteed. General liability insurance helps as it covers replacements, repairs, legal costs, compensation and medical bills.
Business Personal Property Insurance
BPP (business personal property) insurance protects the management company’s office. It covers everything inside, including desks, filing cabinets, chairs and even potted plants. This even includes the situation when you work from home. You have your mobile devices covered as you go and view properties or you see potential renters.
Professional Liability Insurance
Just as the name implies, such a policy protects you from the situations in which you make errors. Property managers offer a service to renters and landlords. When an error is made or something is omitted, someone is losing money. This can lead to a lawsuit. With this insurance policy, it does not matter if you are the party at fault or not. You have coverage to pay all legal expenses, together with any potential damages you are liable for.
Workers’ Compensation Insurance
When you employ anyone, workers’ compensation insurance helps. In fact, it is required by law. This insurance policy is mandatory for all property management companies. If it does not exist, the business is fined.
Keep in mind that workplace injuries can lead to costs that would easily cripple the entire business. Productivity losses also appear. The insurance policy covers everything related, from legal to medical expenses.
Cyber Liability Insurance
This is an insurance type that is rarely considered but it is mandatory whenever you use computers or you are connected to the internet for anything business-related. The property manager electronically stores personal, confidential data on tenants and owners. Email is used and you most likely have a site set up. This sets you up as a perfect cybercrime target.
The 5 types of insurances mentioned above are mandatory for all property management companies. It is very important that you have them in place and you need to take all the time that is necessary to identify other types that might be needed. Whenever in doubt, work with an insurance specialist to help you make an informed choice.