POLICY TYPE

DEFINITION

CLAIM EXAMPLES

 

General Liability

 

Coverage for an insured's negligent acts or omissions that cause personal or bodily injury to another person or damage to property belonging to another.

 

 

A tenant slips and falls on ice in front of the building.

 

Umbrella Liability

 

A form of "catastrophe" liability coverage usually issued in $1 million dollar increments, intended to protect policyholders against high damage awards in excess of the limit provided by a basic, or primary policy.

 

A fire, “on occurrence” leads to a mass evacuation of dozens of tenants who allege they are badly injured due to owner’s negligence. A multimillion-dollar loss ensues.

 

Directors’ & Officers’ Liability

 

 

Claims by shareholders, employees and other third parties for allegations such as fraud, anti-trust, unfair trade practices, defamation, breach of contract against board members and the entity itself.

 

 

A board hires a contractor to do a complete renovation of the hallways in their building. After several floors are completed, some unit owners complain that they were painted the wrong color. There is a dispute between the board and the contractors for an unpaid balance.

 

Property Insurance

 

Property Insurance refers to coverage for loss or damage to belongings of the policyholder or for which the policyholder is responsible.

 

A fire occurs in a building.

 

Business Interruption Insurance

“Loss of Rents”

 

A form of Property Insurance that indemnifies the policyholder for loss of business income, or the above-normal additional expenses to continue operations, resulting from damage to covered property.

 

A fire makes the building untenantable so rents cannot be collected.

 

 

Boiler and Machinery Insurance

 

A form of Property Insurance covering losses caused by breakdown of, or damage to, certain kinds of machinery. Coverage includes damage to property of others and can include Business Interruptions Insurance.

 

A boiler explosion occurs in an apartment building causing damage to the building and the need for a new boiler.

 

Employee Dishonesty Bond

 

Coverage for dishonesty acts such as theft or forgery by an employee. It is important that the managing agent is defined as an employee.

 

A managing agent transfers co-op funds into his own personal bank account.

 

Environmental Insurance

 

An environmental insurance policy provides protection against financial loss arising from pollution. The majority of property and casualty policies do not insure pollution risk leaving the environmental insurance policy as the sole means to recover loss and expense caused by environmental issues. See attached sheet for more information.

A tenant alleges bodily injury due to exposure to toxic mold in her apartment.

 

 

*THIS MATRIX IS INTENDED ONLY AS A SUMMARY AND INCLUDES SOME OF THE BUSINESS INSURANCE NEEDS FOR REAL ESTATE MANAGERS.

 

 

Other Lines of Insurance purchased by Real Estate managers

POLICY TYPE

DEFINITION

CLAIM EXAMPLES

 

Employment Practices Liability

Coverage against harassment, discrimination, wrongful termination as well as other alleged employment related suits. Can include coverage for non-employee related harassment and discrimination units.

A building employee sues for sexual harassment after the board president allegedly makes lewd comment to her.

 

Property Managers’ Errors & Omissions

 

Coverage specifically tailored for Property Management Firms. Errors and Omissions Insurance protects your company from claims if your client holds you responsible for errors, or the failure of your work to perform as promised in your contract.

 

The property manager of a cooperative forgets to pay multiple utility bills. The resulting suspension of power causes multiple financial losses to unit owners and community tenants.

 

Cyber Liability Insurance

 

Coverage to protect businesses against exposures to loss created by the use of technology applications presently uncovered by most business liability policies.

A hacker gets onto a management company’s computer system and steals personal information of tenants housed on the database.

 

Workers Compensation Insurance

 

Protection providing benefits for workers injured or contracting illness on the job. Required in all states, this insurance covers medical treatment and loss of wages, subject to benefit schedules that differ from state to state.

 

An injury to a super of a building occurs while performing routine maintenance.

 

Group Health Insurance

 

Insurance against loss by illness or bodily injury.

A building employee comes down with pneumonia and seeks medical care.

 

** Personal Lines insurance (i.e. tenant’s coverage, personal auto, individual life, etc.) can also be purchased through our Real Estate insurance practice.

 

*THIS MATRIX IS INTENDED ONLY AS A SUMMARY AND INCLUDES SOME OF THE BUSINESS INSURANCE NEEDS FOR REAL ESTATE MANAGERS.