There are several hazards a property owner faces that could result in a catastrophic liability lawsuit. This includes attractive nuisances (open access to a swimming pool, for example), elevator or escalator malfunction, inadequate security, negligent property maintenance, premises in disrepair, and unprotected slip hazards (such as spills or recently cleaned floors), among others. To determine an operation’s Umbrella needs, it’s essential to understand your client’s exposures. We recommend getting as much information about a client’s operation as possible.
Understand Your Client’s Operation
Property Amenities
For condos, apartments, co-ops, HOAs, townhouses, senior/independent housing, and other types of habitational risks, it’s important to assess the amenities available on the premises that could pose additional hazards and liability risks, including pools, barbecue areas and/or fire pits, recreational facilities or playgrounds, and fitness centers.
Auto Liability
Real estate company employees may use their personal vehicles or a company car to conduct business, leaving the property owners exposed to auto liability risks in an accident.
Security
For all types of real estate risks – from habitational to retail and commercial office buildings and strip malls, conduct a deep dive into the operation’s security exposures.
Determining Your Client’s Real Estate Umbrella Needs
When looking to place Real Estate Umbrella insurance, look for these coverage features to include:
- No Assault and Battery exclusion
- No Abuse and Molestation exclusion for some risks
- Crisis Response Coverage
- Unintentional Errors or Omissions
- Broad Named Insured endorsement (to include additional insureds)
- Limitation of coverage to specified locations endorsement – Newly acquired locations must be reported to and accepted by the company within ninety (90) days.
- Follow-Form Coverages
- Bodily Injury and Property Damage
- Directors and Officers Liability for not-for-profit community associations
- Discrimination
- Auto Liability
- Employee Benefit Liability
- Advertising Injury
- Host Liquor Liability
- Personal Injury
- Punitive or Exemplary Damages – except those related to a certified act of terrorism
