Property Managers Need Professional Liability Insurance
Calling all property managers! Your job involves a lot of responsibility and stress. By acquiring the right type of professional liability insurance coverage, you can rest assured that you are protected from the associated risks.
Read these true examples to emphasis the points.
1) A real estate developer hired someone as a property manager for the new apartment building complex he had built. Unfortunately, as the months past, many units still were yet to be occupied. Although the heavy construction underway in the vicinity was the real cause of vacancies, the owner blamed his manager for the situation and brought a lawsuit against him, alleging that he did not perform job duty as required and subsequently caused a loss of business income.
2) Two different management companies were fighting to win a contract from a large firm. In the course of commercial negotiations, the first company alleged that their competitor had a black business management record. Upon hearing this news, the large firm awarded the contract to the first company. The second company filed a lawsuit for slander against the first company as a result.
3) After a Hispanic family bought and moved into a condo within an association, they were informed that they were not permitted to park in more than one space. When they did use two parking spaces, they were issued parking violations. The Hispanic family called a meeting between others with ethnic backgrounds and determined that there were unfair practices put into place. A discrimination lawsuit was filed as a result.
4) The water pipe at an apartment complex developed a leak. This resulted in water trickling into a unit. The property manager summoned the repair man immediately, but he arrived only hours later after significant damages from a flood had already been incurred. The property manager became fed up with the repair guy who habitually showed up late for jobs. He told the man that he was fired. The repair man brought a wrongful termination lawsuit against the property manager, claiming that he had let him go from his job because he did not like him.
5) A University student moved into a rental apartment complex. That was when the trouble began: motorcycle gangs as guests, wild parties, noise and complete havoc! The property manager gave the student due warning that if he did not cease the late-night merry-making, he would have him evicted. The property manager’s words seemed to have no effect and the partying continued. The property manager started the eviction procedure and had the student’s possessions confiscated. The university student began a lawsuit, alleging wrongful eviction.