Habitational and Commercial Real Estate Information

 Whether your real estate exposure is a high-rise office building, an industrial park, a community association or any other, your insurance needs are unique and require expert analysis and counsel in determining the most effective means of addressing them from both a coverage and cost perspective.  The following is intended to be an overview of the most common coverages needed by real estate risks; obviously, your individual needs may be different.

 Commercial Property

Protecting your tangible assets (such as your building and business personal property) against sudden and accidental occurrences is done on a Commercial Property form.  While coverage is most often provided on a “Special Perils” (“All Risk”) basis, this does not mean that any and all misfortunes you may suffer will be covered but, rather, that coverage is provided on a broad basis for anything other than what is specifically excluded.  A few of the more common exclusions include Flood, Earthquake, Nuclear Accidents, and War.  Coverage for some of these perils is commonly available at an additional cost.  The real benefit of a “Special Perils” (“All Risk”) policy, however, is that it places the onus on the insurance company to prove that a loss was caused by an exclusion in order to decline coverage. The pricing and breadth of coverage available is often influenced by your geographical location as well as your personal loss history.

Other coverages frequently included under the Commercial Property form can include Loss of Rents or Business Income, Equipment Breakdown Coverage, and additional costs due to enforcement of Ordinances or Laws related to a loss.

 Commercial General Liability

 No matter how vigilant you are, everyone including commercial entities faces the potential of being involved in a lawsuit for allegations made regardless of whether groundless, false or fraudulent.  These could include bodily injury sustained due to the alleged disrepair of your premises, allegations of libel or slander, and liability assumed for another in a contract.  You could also be accused of having caused damage to property belonging to someone else.  Regardless of the charge or its validity, at the very least, you will need legal representation in order to sort out the facts; coverage is included for that research and your defense.  Should a judgment ultimately be levied against you, Commercial General Liability would provide coverage for the damages you are required to pay. 

 Directors and Officers Liability

 Both habitational and commercial community associations are run by volunteer owners who are elected to the Board of Trustees.  These trustees are charged with making decisions, enforcing governing documents, developing and administering a budget, as well as many other related tasks that can affect all owners’ daily lives as well as one of their largest investments:  their home or office unit.  By volunteering, these trustees expose themselves to liability should their decisions or actions have an adverse effect on members of the community, whether perceived or real.  Directors & Officers Liability provides comprehensive liability protection for these volunteer trustees as well as their predecessors and successors.  

Fidelity Bond

 Unfortunately, despite stringent measures taken to protect the association’s finances, thefts do occur.  Coverage is provided for theft of money or goods by employees, trustees, independent management companies, or other volunteers with access to association funds.

 Commercial Umbrella Liability

 How much liability insurance should you carry?  There is no set answer to this question as no one really knows until a judgment is made against you.  Commercial Umbrella Liability provides protection over and above scheduled underlying liability policies such as General Liability, Directors and Officers Liability, Commercial Automobile Liability, and Employer’s Liability.  Given the unpredictable nature of injuries and judgments, it is universally agreed that additional limits are necessary and warrants serious consideration.  The pricing for this excess coverage is generally quite reasonable.