When you choose an insurance policy for your commercial property, a number of factors need to be taken into consideration. Among the most important factors to consider is – of course – what is covered by the insurance policy. Along with the basics, there are three specific areas that your policy should address, but which most insurance policies unfortunately do not. Those areas are lead paint liability, tenant discrimination, and crime coverage.
Lead Paint Liability
In the worst-case scenario, a building owner recently lost his 35-unit multifamily apartment building in the Bronx. How did this happen? One of his tenants filed a lead contamination lawsuit against him. Any building constructed prior to 1978 has been exposed to lead poisoning contained within the paint. The Environmental Protection Agency (EPA) recently tightened the allowable amount of lead that can be contained within children’s bloodstreams. This has resulted in a significant increase in the number of lawsuits brought against landlords for lead poisoning. To make matters even worse, there are only a handful of insurance companies that will actually cover lead liability. This makes it even more important to ensure that your policy includes lead liability insurance coverage. Evergreen Insurance offers policies which include lead liability insurance. Read more
The necessary insurance coverage for a commercial building can be a large expense. Among the factors that affect the cost of a commercial insurance premium are liability. In the event that your building has an increase in claims, insurance premiums typically increase as well. Fortunately, there are steps that can be taken to decrease your building’s liability while simultaneously reducing insurance premiums.
- Make certain contractors are insured. From time to time, you may need to have maintenance work performed on your building. Always make a point to ensure that any contractor who is performing work on your property is properly insured. All contractors should have worker’s compensation, liability insurance, auto insurance, and umbrella insurance.
Building owners are naturally interested in ways to lower their insurance rates, thus reducing their cost of ownership. There are actually many ways that this can be done! If you’re a building owner looking for ways to cut down your insurance rates, here’s some food for thought:
1. Creating a Building Profile
Creating a building profile to provide to the insurance company is one of the easiest and best ways to reduce insurance rates. A variety of factors affect building insurance rates, including number of units, replacement costs, type of construction, claims history and more. By presenting a comprehensive building profile to the insurance company, building owners can ensure that it has all of the most recent and relevant data on which to base your insurance rates. Remember to review your building valuation regularly. Over time, the cost of material and labor can change, sometimes significantly. Discuss the difference between replacement cost and cash value with your insurance broker. Read more