When was the last time you took a careful look at your business’ insurance protection? There is no need for salespeople to give you a pitch. This is a serious topic that is really self-motivating.
Many property managers are so busy managing properties that they delegate the responsibility for adequate insurance coverage to someone else. Yet this topic is truly worthy of your personal attention.
Before you think I’m trying to scare you to action, allow me to make one thing very clear. Having insufficient or lapsed insurance protection can and sometimes does lead to financial ruin. It’s not just property and casualty insurance that I’m referring to. It’s the various liability insurance products that are often overlooked. Without the right “umbrella policy” you may be quite vulnerable. An umbrella policy is only important if there’s a chance you could be involved in an accident that ends in a lawsuit. Unless you live a very sheltered life or have few assets, you’re likely to need one. It provides an additional layer of insurance, typically $1 million or $2 million, above your auto insurance, your home insurance, and your business liability coverage. An umbrella is for the unexpected “big one.”
An insurance agent described a scenario that I’d categorize as a possible big one: “After attending a Christmas party, my client got involved in a fatal auto accident where the other driver was killed,” the agent explained. “My client was given a breathalyzer on the scene and [it] exceeded the legal alcohol limit. He was sued for around $1.25 million by the claimant’s family and was legally liable for the damages, which were paid by the umbrella policy. The client was otherwise an upstanding citizen with no past history of these kinds of tragedies.”
If you think you don’t have $1 million and thus you don’t need an umbrella policy, think again! If you’re sued by someone who falls down the stairs at your apartment building, you can be sued for a lot more than what you have in savings or cash. Your retirement funds, investments, properties and even your future earnings are at risk if a judge allows someone to garnish your wages to pay off a settlement. In some states, the equity in your home can be part of a lawsuit judgment.
If you own your business, a house and have a retirement account, an adequate umbrella policy should be part of your financial plan. Most insurance companies offer these plans in increments up to $5 million, and some go as high $10 million. In the slower seasons of the year like summertime, this is a concern to thoroughly address. Call your insurance carrier and ask for help in doing an assessment of your insurance needs.
Now may also be a good time to shop around and ask for quotes from a number of insurance providers. Each may offer suggestions and timely tips that may help you see where you’re over or under insured. Speaking of “coverage” summertime is also a great time to plant …read more
From:: Property Management