Property managers take on a lot of responsibility. They have to keep the property in good condition, repair problems as they pop up, and ensure the safety of both tenants and visitors to the property. This is a big undertaking, and try as you might, you can’t prevent every accident that might happen. Unfortunately, if something does go wrong and harms someone else, then your company might be the one on the line to pay for the damage.
Still, there are ways to overcome these challenges without putting your company’s finances, reputation and assets on the line. One of these resources is liability insurance, and to get the benefits that are perfect for you, you will need to work with your agent to strategically select optimized coverage.
Keep reading to learn more about how you can optimize your liability coverage to your advantage.
Why Property Management Companies Need Liability Insurance
Think of some of the accidents that might occur within the property you manage:
- A tenant might get hurt in your property because of a maintenance issue that you failed to fix. For example, if the furnace explodes in one of your town houses, then the tenant might get hurt, or their possessions might get damaged.
- A guest, who is not a tenant of your property, could still visit, and at this time they could get hurt. For example, if you own a restaurant complex, then someone could get injured when walking between locations, such as if they trip on a piece of broken pavement.
- One of your maintenance team members might enter a tenant’s space to do maintenance. However, while there, they might damage the belongings of the tenant.
In any of these cases, the fault might lay with your company. The accident ultimately occurred on your property, regardless of whether it was in the space of one of your tenants. Therefore, you might be the one who gets blamed for these accidents, and you might have to repay the harmed party.
Under these circumstances, your property management company’s general liability insurance can help you cover the costs of these losses. It can pay for both property damage and property damage to both tenants and other visitors. Additionally, if one of these harmed parties tries to sue you for their losses, then your liability insurance will help you cover the resulting legal fees.
Additionally, liability insurance can assist you even when you are not at fault for third-party losses. Just because you might have no fault in the matter doesn’t mean that someone will not try to sue you.
Keep in mind, general liability insurance is only the baseline coverage that any business needs, and you will likely need to enhance it with other coverage. With the help of your dedicated commercial insurance agent, you’ll have the support you need to put your policy together to your advantage.