Property managers handle varied and complex matters for residential and commercial property owners. Even the most diligent property managers can find themselves at the center of complaints or disputes that result in substantial out-of-pocket expenses or, even worse, a lawsuit. To reduce financial exposure, prudent managers obtain E&O insurance for property management (errors and omission insurance). This kind of professional liability insurance is an important tool in a property manager’s risk management toolbox.
E&O Insurance Helps Mitigate Financial Exposure
Owners, together with their tenants and/or lenders, may assert claims against a property manager for losses arising from the manager’s alleged negligence or failure to perform his or her duties. For example, a manager could incur costs and damages based on allegations of the following:
- Misapplication or wrongful retention of security deposits or escrow accounts
- Constructive or actual wrongful eviction of tenants
- Discrimination in leasing or lease enforcement
- Accounting or financial reporting errors
- Unsatisfactory maintenance or unsafe conditions
- Environmental contamination such as mold
The experts at Arroyo Insurance Services explain that these kinds of claims may not be covered by general liability insurance, and even a baseless claim can subject a property manager to expensive litigation. Professional liability insurance can help cover litigation expenses, including attorneys’ fees and costs associated with defending a claim.
Your Risk Management Action Plan
A comprehensive risk management strategy includes E&O insurance for property management. By carefully assessing your scope of services and anticipating potential areas of concern, you can implement a plan that includes professional liability coverage tailored to your business.
Signing up for insurance is one of the least-discussed aspects of entrepreneurship. Everyone focuses on income and expenses, but rarely is insurance discussed, even with the potential for your business to be sabotaged without it. If you’re interested in starting an independent consulting firm, Albuquerque insurance agencies are ready to help you. Here’s what you should know about the most basic coverages that will serve as the foundation of your policy for your independent consulting business.
Professional Liability Insurance
Professional liability covers you in case a client files a lawsuit claiming that they experienced a loss because of an error or omission on your part. Your policy would cover your attorneys’ fees as well as judgments and settlements.
General liability insurance is more of broad coverage in that it covers third-party claims related to injury or property damage caused by your business. Once again, if a lawsuit is filed, your policy will be available to cover your legal expenses.
As the name implies, property insurance protects your business property against loss or damage. Items that can be covered under your policy include your building and landscaping, furniture, equipment and even digital assets. Your property will cover the cost to repair or replace these items in case of a fire, inevitable storms, theft or vandalism.
There are plenty of other coverages to choose from depending on your needs. The best Albuquerque insurance agencies will be willing to customize their offerings to meet your demands.
Are you looking for an Orlando insurance agency to help protect your new business? As you embark on your search for an agency, it’s good to understand the types of coverages that are available to you. For new entrepreneurs, here are three important coverages that you should expect to be included in your policy.
Professional Liability Insurance
Professional liability insurance protects you in case a 3rd party files a lawsuit against you claiming that they experienced a loss because of an error or omission by your business. If that were to happen, your policy would cover your attorneys’ fees as well as any other expenses for which you’re found liable.
General Liability Insurance
General liability also protects you in case a 3rd party files a lawsuit. However, it’s a more broad coverage in that it covers you in case someone suffers an injury or property damage because of your business. Like professional liability, your policy will cover all of your legal expenses related to the lawsuit.
Property insurance protects you in case your business assets become damaged or lost. Items such as your building, furniture, equipment and digital assets can be repaired or replaced if covered under your policy. Events that are covered include fires, storms, vandalism and theft.
Other coverage options such as workers’ compensation may also be necessary depending on whether you have employees. Your Orlando insurance agency can help you build a policy that meets your exact needs.