Welcome to Law-Forums.org!   

Advertisments:




Sponsor Links:

Discount Legal Forms
Discounted Legal Texts


Property Management Liability Insurance

Been the victim of Legal Malpractice? Discuss it here.

Property Management Liability Insurance

Postby Jordy » Tue Nov 22, 2016 5:42 am

Hello!  My condo association(110 units in urban New England) would like to know whether it is common or reasonable for property management firms to carry professional liability insurance.  Our current management firm(which has 90 employees) has insisted on the association bearing all legal liability for the management company's acts, saying that this is a standard IREM recommendation.  However, it seems that the firm's incentive to perform his job properly is reduced if he bears in essence no liability whatsoever.

Any guidance that you could provide on this topic would be extremely welcome.

Thanks!
Jordy
 
Posts: 44
Joined: Tue Feb 04, 2014 4:04 pm

Property Management Liability Insurance

Postby Peterson » Tue Nov 22, 2016 11:36 am

Hello!  My condo association(110 units in urban New England) would like to know whether it is common or reasonable for property management firms to carry professional liability insurance.  Our current management firm(which has 90 employees) has insisted on the association bearing all legal liability for the management company's acts, saying that this is a standard IREM recommendation.  However, it seems that the firm's incentive to perform his job properly is reduced if he bears in essence no liability whatsoever.

Any guidance that you could provide on this topic would be extremely welcome.

Thanks!
Peterson
 
Posts: 40
Joined: Wed Mar 05, 2014 1:32 am

Property Management Liability Insurance

Postby Arvind » Mon Nov 28, 2016 11:29 pm

Su-

Good afternoon and thank you for your question.  The management contract that you have is the agreement between the association and the vendor(property management firm).  The language within the management contract would specify the coverage required(or not required).

Your insurance agent needs to know if the management company has coverage or coverage is required, per the contract.

IREM does make recommendations for their managers as it relates to contracts.  I cannot speak for all managers, but I know of some New England condominium associations that both provide coverage and do not.  Every association in that regard is unique.

I would recommend that if you have specific concerns that you first learn from your insurance agent(or Agency) and then speak with your association manager.

Contacting a lawyer is always helpful in determining responsibility or addressing contract concerns.

Good Luck with the resolution to your problem.

Owen Ahearn, CPM, ARM, ACoM

Ahearn Realty Management, Inc.

www.ahearnrealty.com
Arvind
 
Posts: 44
Joined: Sat Jan 04, 2014 1:24 pm


Return to Legal Malpractice

 


  • Related topics
    Replies
    Views
    Last post