Determining the type of business insurance property owners should invest in is essential for business owners. Likewise, advising property owners on the right insurance policy requires a general knowledge of their exposures and specific conditions that could lead to liability lawsuits. Failing to provide your clients with the proper guidance might open them up to a loss, which they may try to recoup through a lawsuit against you.
Business Insurance Property Owners Can Invest
While E&O insurance can help take care of these concerns, you should familiarize yourself with the following policies and their importance for property owners.
Types of Business Insurance for Property Owners
Protection from lawsuits and financial risks is the primary goal of insurance coverage. The following types of insurance address the more common risks of businesses that deal with property ownership and management.
General Liability Coverage
Essential coverage would be general liability insurance. It protects the property owners from claims dealing with personal harm or bodily injury. It is also termed business liability insurance and can cover medical bills, replacement or repairs on a third party’s damaged property, and legal fees for claims. This coverage also included reputational harm, copyright infringement, and advertising injury.
Errors and Omissions
Property owners continually work with contracts, leaving them vulnerable to mistakes or providing false information. Risks covered by E&O insurance include:
• Errors involving services provided
• Inaccurate advice
Workers’ Compensation Coverage
If the property owner has employees, they may have to obtain workers’ comp insurance. Also, it is both legal and financial protection that assists with work-related illnesses or injuries. There are different requirements across the states, but most policies require death expenses, missed wages, vocational rehabilitation costs, and medical care for employee injuries.
Flood and Other Property Hazards Coverage
General liability coverage is limited to property damage that happens with third parties. Then, they should add specialized coverage to cover potential hazards that might destroy the building. Risks and fire insurance, flood insurance, and sewer backup insurance can take care of repairing damaged structures or replacing personal property that perished during one of these events.
Builder’s Risk Insurance
A property owner may oversee development projects or renovations on the property. Moreover, if the owner is dealing with a vacant lot or has a property that will be primarily vacant during the construction phase, they would want to protect against vandalism, theft, contractor injuries, and other damages. A builder’s risk policy will fill in the gap in these areas that typical fire or liability insurance policies leave.
Determine What Kind of Business Insurance Property Owners Should Carry
You can be more effective in recommending the proper business insurance policies to your clients if you are familiar with the property, current activities on the property, and potential development projects. Additionally, having too little coverage is just as dangerous as not having coverage at all.
About Cochrane & Company
For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (855) 967-0069.