Everybody makes mistakes.  Even if your property manager clients follow a strict code of conduct, there is always room for human error.  If they make a professional mistake and are not insured, the consequences could be devastating.  Starting with the basics of E&O will inform them of the value of this important coverage.

 

Who needs E&O insurance?

 

Your property manager clients, like all professionals, provide a service for a fee, which means they have E&O exposure.  Explain to your clients the repercussions they could face if their service isn’t done correctly or on time.  It could not only hurt their reputation, but also end up in a costly lawsuit.

 

What is E&O insurance?

 

Basically, E&O insurance is a professional liability insurance meant to protect insured businesses or individuals in the event that a client claims that they provided (or failed to provide) their service correctly.

 

In particular Property Managers are subject to claims from Fair housing, Failure to Place or Failure to Maintain Insurance, etc.

 

Why do your client’s need E&O insurance?

 

Even with the best employees and the best risk management plan in place, mistakes happen.  Even if your clients are not at fault in a claim made against them, litigation is both costly and time consuming.  It is better to be proactive than reactive in situations like this.

Below are a few potential Property Manager Claim Scenarios that could arise:

•  A property manager fails to place insurance or fails to renew coverage on a location only to see a claim result.
• A property manager mishandles accounting and financial matters, resulting in penalties, cancellation of service or fines.
• A property manager is sued for wrongful eviction, invasion of privacy or wrongful entry.
• A property owner brought suit against the property manager of a retail location for lost income, alleging the property manager failed to provide an adequate level of services. The property owner charged that the property routinely had an insufficient number of security personnel and parking lot attendants on the premises and that the property manager was negligent in maintaining the exterior of the building and parking lot.

 

Fortunately, New Empire Group understands the E&O coverages and marketplace and offers E&O programs for property managers of all sizes on a national basis with the some of the industry’s most respected carriers.

 

If you have additional questions about our E&O program, don’t hesitate to contact us at (516) 431-8300 or email your question to [email protected].

 

Keep up to date with what’s new at New Empire Group, Ltd. by visiting our website,www.NewEmpireGroup.com or find us on Facebook, LinkedIn & Twitter!

 

Check out all of the great Insurance Programs for Condominium Insurance, Cooperative Insurance,Apartment Insurance and Property Manager’s Insurance that New Empire Group, Ltd. offers!