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In the real estate business, there are plenty of loopholes when it comes to appropriate risk transfer techniques. Horror stories happen when updated certificates of insurance arent maintained and the property owner or manager is thrown into a lawsuit with no coverage to react. To ensure proper risk transfer and a subsequent reduction in claims, heres a checklist of questions to answer:
- Whos looking over the certificates of insurance of your tenants to make sure the proper coverage and wording eliminates your risk of being involved in a claim?
- Is there a process in place to properly maintain and update certificates of insurance?
- Who reviews and maintains vendor contracts and leases from an insurance perspective? Is this your attorneys job or your insurance agent/risk manager?
- Is there a way to relieve your staff from all the detailed work of maintaining certificates? What is your broker currently offering as far as risk transfer services and certificate tracking?
- To ensure tenants comply with providing certificates of their insurance, what kind of reward program has been set up to drive your tenants to provide the proper certificates of insurance in a timely fashion?
If the answer to any of these questions leaves you feeling less than confident, contact Assurance immediately and speak to one of our real estate advisors.
ABOUT THE AUTHOR
Dan Klaras, an executive management leader and board member, is President of Assurance. With more than 30 years of experience, his responsibilities lie in directing all property and casualty insurance practices, as well as the overall sales management and producer acquisition strategy of the agency. As a result, Dan is charged with leading producer education and development and generating new property and casualty products that drive value to Assurance clients. Dan received a Bachelor of Arts degree in Business Administration from Hamline University in St. Paul, Minnesota, and served on the National Workers’ Compensation Reinsurance Pool Board of Governors for three years.