Risks Property Managers Often Overlook
August 14, 2017
Property managers have unique risks that can only be insured with the right kind of commercial insurance. Property manager’s insurance can help ensure that property managers and third party interests are protected in the event of a fire or other catastrophic loss. Property managers often get caught between the owners and the tenants. There is increased litigation holding all professionals to a higher standard, and that includes property managers. In addition, property managers who have an equity interest in the property have increased risks that often lead to conflict of interest claims.
- Business Interruption–Loss of rents or rental income from a fire or other event.
- Tenants–Tenants that are involved in hazardous operations can increase your risk. These can include illegal activities.
- Green Buildings –Green buildings that include solar panels or other green materials can sometimes hinder fire fighters and increase repair costs.
- Discrimination –Tenant and landlord issues can often turn into large discrimination claims.
- Builders Risk Insurance–Many property managers make the mistake of having the contractor purchase builders risk insurance on their behalf. We recommend the property manager secure the coverage in their name.
- Environmental–More and more people and tenants are aware of ventilation, and other environmental issues that could impact your risk.