Denver Property Managers Risks
Some Denver property managers are involved in managing property owned by others while others may own property and contract management to others and finally some property managers also own the property they manage. Regardless, property managers have very specific risks that include; property damage, cleaning, collecting rent, property maintenance, management of employees, security and much more.
To protect against loss most property managers purchase commercial insurance. While insurance coverage is generally good, many property managers may be lacking coverage for five very important risks. Our experience in the property management field has taught us to be aware of these five important risks.
Five Risks Every Denver Property Manager Must Protect Against
- Directors and officers liability– If your property has a board of directors you will need directors and officers (D&0) liability insurance. Typically D & O insurance provides the following coverage breach of fiduciary duty, assessment disputes, discrimination, by-law litigation, and more.
- Business income, loss of rents & extra expense– These three coverages often combine into one called business income. The coverage is designed to insure the property owner for the peril of lost income (rent) as a result of a covered loss. For example, if a fire destroys 55 units of a 500 unit complex the owner will not be able to collect 11% of rents. The insurance will provide funds to replace the lost rent during the time of recovery.
- Tenant Discrimination– This is one of the fastest growing trends in the property management area. Coverage will pay for Tenant Discrimination, Harassment and Wrongful Eviction Liability. Acting in good faith may not always be enough for a tenant or former tenant to feel like they have been discriminated against.
- Builders Risk Insurance– Many property management companies are involved in constructing new or additional buildings. Many property managers make the mistake of having contractors purchase builders risk insurance. Don’t make this mistake. As the owner of the policy you have total control over any claim settlement and can receive claims checks directly from the insurance company.
- Employment Practices Liability Insurance (EPLI)– We live in a very litigious world. If you have employees you are at risk of being sued for discrimination, firing or even failure to hire. EPLI coverage will defend you and pay any damages awarded that are covered under the policy.
As you can see, property managers have unique risks that require a partnership with an agent that understands your industry. Fortunately, with options like the Denver business owner’s policy, it’s also unnecessary. At DCInsurers – Mountain, we can help. We have knowledge and experience working with small to mid-size businesses, and we can help you choose the coverage options that will work best for your specific circumstances using business insurance options like the Denver business owners policy.