Risk transfer can lower property management insurance expenses

Property managers should look into risk transfers.

While it is extremely important for a property management company to have insurance, the expenses may not have to be as high as it may seem, according to Robert Scullin, vice president of The Graham Company.

There is a type of plan that actually wouldn't cost any money, and that is the contractual risk transfer. This helps a company cut down the chances of losses by passing the risks on a different party, Scullin noted in an article for Multi-Housing News. Every commercial insurance policy on the market allows for another entity to piggyback on the policy.

This could significantly help some property managers, as the insurance cost in this situation would be dependent on four aspects – property quality, operations quality, loss performance, and an assessment of loss possibilities, Scullin said.

It is important to be certain that the insurance coverage is consistent. There should be lists of minimum limits for each client, and this should be checked by a broker, he added. Workers compensation, employers liability, as well as general liability and automotive insurance may all need to be a part of this process.

Disclaimer: All data and information provided on this site is for informational purposes only. Zoliath.com makes no representations as to accuracy, completeness, correctness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, opinions or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.