(479) 756-6330 | Farris Insurance offers business, property, and risk management service for NW Arkansas. We are based out of Springdale, AR. Call today for a quote.

//  by 

If you manage properties for yourself or others, there are some important things to consider when it comes to finding the right kinds of insurance to keep you covered. Here are some of the basics:

General Liability Insurance

This type of policy covers basic risks such as property damage by tenants, residents who are injured, third-party claims of property damage, and bodily injury.

Commercial or Business Property Insurance

This type of coverage helps protect your property management business and its physical assets, in the case of events like fire or theft. Typically, it covers things like the building, equipment, tools, inventory and furniture. It can also help replace lost income for your company if you are unable to operate due to a covered event.

Business Owners Policy

Often you can bundle general liability insurance and property insurance together and save money through a Business Owners Policy.

Errors and Omissions / Professional Liability Insurance

This type of policy can cover legal expenses related to a business decision, including errors, oversights and mistakes. In the case of property management, that could include things like claims of invasion of privacy, wrongful eviction, discrimination, or hiring unlicensed contractors.

Workers Compensation Insurance

If your business has employees, workers’ compensation insurance is often required. It covers medical fees for work-related injuries.

Commercial Auto Insurance

If your property management company owns a vehicle, commercial auto insurance helps pay expenses related to accidents, vehicle theft, weather damage, or vandalism.

Cyber Liability Insurance

This policy helps in case of a data breach or cyberattack. It can cover data recovery costs, notifications, and more.

Condominium Association’s Property Policy

If the property is a condominium, the condo association should have a property policy that’s specific to associations, covering joint ownership of property. Each unit owner buys their unit as well as buying into the association. The association then owns the buildings and the land and insures the building. Meanwhile, the individual condominium owners should have their own coverage for the personal property within the unit as well as coverage in case of loss of use of their unit. 

A dramatic example of what can go wrong is the deadly June 2021 Champlain Towers condominium collapse near Miami. According to legal experts who spoke to Reuters, the tragedy will set off years of litigation as victims and their families look to find fault among the building’s management as well as engineers, architects and others. The condo association disclosed it had $30 million in property insurance and $18 million for liability. A Florida judge has said the insurance “will obviously be inadequate to compensate everyone fully.” The case is a reminder to purchase enough coverage to protect the value of the property and any liabilities.

Directors and Officers (D&O) Policy

In the case of a condo association or a property management business that has a corporate board of directors or an advisory committee, you should consider a D&O policy. This protects the individual association, board or committee members if there is a claim of negligence or mismanagement.

Farris Insurance Can Help

There are a lot of different considerations for property managers or owners when it comes to insurance. Here at Farris Insurance, we can help you find the right insurance company with the right policies for you, and help you determine the appropriate amount of coverage and deductible for your situation.

Farris Insurance serves businesses and people across Northwest Arkansas, including Springdale, Fayetteville, Bentonville, Rogers, and throughout Benton County and Washington County. Contact us today at (479) 756 – 6330.