FIND OUT HOW WE CAN HELP YOU
Changing Real Estate Market Requires Updated Insurance Portfolio
Posted on: February 11, 2016 by Newmark Insurance
There has been a change in the financial market as far U.S. commercial real estate is concerned. This shift has had a range of risk management challenges. According to an article in Ace Advisory Group, this change led to high turnover in real estate portfolios and controlled capital expenditure budgets. This is partly due to companies seeking cost reductions in an effort to improve their competitive position. In order to protect yourself from liability claims, which have been increasing, build your Real Estate E&O Insurance Portfolio.
Furthermore, this increase in liability claims may lead to higher deductibles, self-insured retentions and more restrictive terms and conditions. New risks are emerging, for example, defect exposures and reductions to capital improvement and operational expenditures which face heightened liability risks. In order to avoid these risks, companies need to develop new strategies to address the exposures and review their coverage.
Here are a couple of ways to go about that.
- New York’s Scaffold Law. Labor Law 240 is said to hold owners and contractors liable for damages when a worker is injured in a fall (now extended to other forms of injury). Those opposed to this law believe that it drives up the cost of construction and increases the liability insurance. The risks for construction jobs are high and therefore, risk managers should demand there to be a supervisor on site.
- Construction and Products Related Liability. During the real estate boom, product quality and development decreased. If you’re a company that worked in an office or location with construction defects, it’s essential to track down the contractor that you used and assess their status for completed operations insurance in order to reduce liability.
- Maintenance and Capital Expenditure Exposures. Staff cuts can be a contributing factor to workplace incident. If your company was trying to save money but in turn caused maintenance and security issues, it’s essential to identify and correct those problems.
At NewMark Insurance Services,, we strive to protect real estate agents and brokers in the chance that alleged claims are made. We design our policies to cover your legal defense costs and indemnification in the event you are sued. Our variety of policies to choose from and our experience and expertise is why you need NewMark. We make sure to address each problem and secure the right coverage plan for you. For more information, call us today at 855.777.6549.