Insurance coverages in Property management business.
24/06/2024.
By KIGGUNDU JOSEPH.
Property managers take on alot of responsibilty, which results in high risks. A disagreement with a tenant or a building owner could have serious financial consquences. Insurance coverage is essential in property management to mitigate risks and protect properties, owners, and tenants, Sparta properties provides you with information in regard to insurances of Property management business.
Insurance is a financial safety net that protects individuals and businesses from unexpected losses or damages. It's a contract between the policyholder (you) and the insurer (the insurance company), Where:
1. You pay a premium (a set amount of money) to the insurer.
2. The insurer promises to cover a specific portion of your losses or damages if an unexpected event occurs e.g (accidents,illness, natural disaster, theft etc). Here are some common insurance coverage plans for property management companies.
* Commercial property insurance: This is also known as commercial property coverage, is a type of insurance that protects the value of business assets forexample buildings, contents, property of others. Some situations that commercial property insurance can cover include; fire, windstorms, vandalism etcs. This covers the claims of third-party bodily injury and property damage that occur on your premises or as a result of your operations.
* Professional liability insurance. This is also known as Errors and Ommissions( E&O) insurance, protects professionals and businesses from financial losses and reputational damage resulting from legal liability for errors, omissions, or negligence in their work forexample Negligent acts or errors, Omissions or failure to perform duties, Breach of contract or fiduciary duty, Intellectual property infringement, Misrepresentation or fraud. professional liability typically covers legal fees and court costs, settlements and judgements, defence costs, including expert witness fees, compesation for damages or losses.
* Workers compesation insurance: Also known as workers comp, is a type of insurance that provides financial support to employees who suffer work-related injuries mostly from the rebel or errant tenants or illnesses. It provides benefits to employees, including medical expenses incase an employee is being physically attacked by the tenant, lost wages, rehabilitation costs (along the way the employees mostly the field employees are verbally attacked and abused which may result in mental distress and uncomfort to continue their field rountine so they may need physchologist to guide them), death benefits. Workers' compesation insurance is mandatory for most employers and provides benefits to employees regardless of fault. It also protects employees from lawsuits related to work-related injuries or illnesses.
* Business owner's policy: This is a package of insurance policy that combines property and liability coverage for small to medium-sized businesses. This insurance policy typically covers, property insurance (covers damages to building to buildings, equipment, and inventory). 2. Liability insurance: covers legal liability for injuries or damages to others. 3. Business interruption insurance: Covers lost income and expenses if the business is forced to shut down due to a covered event. This policy is convenient, cost effective, customisable( can be tailored to meet specific business needs).
Insurance helps protect professionals and business owners(property managers) from financial losses and reputational damages resulting from daily operations both in the office works and field operations in the event of lawsuits and physical comfrontational attacks from the errant tenants/clients.