CAL Insurance has years of experience in structuring insurance programs for real estate investments groups with various asset concepts. Examples include shopping centers in the Pacific Northwest, under-performing apartment complexes that are in excellent structural shape but require aesthetic improvements, class A buildings in Silicon Valley, “only triple net lease” commercial assets and off-campus student housing in New Mexico. We know investment real estate and have been on the front lines for decades, ensuring our clients have the appropriate insurance programs in place.
Finding the right coverage for your property can become complicated as its based on varying factors such as location, type of construction, and a number of other factors. Having solid commercial property insurance in place protects your business’s physical assets from fire, explosions, ruptured pipes, storms, theft and vandalism. This program also needs to have appropriate limits for Ordinance and Law as well as Loss of Rental Income coverage. Many times lenders will also have specific property insurance requirements. Earthquakes and floods typically aren’t covered by commercial property insurance but can be sourced through different insurance markets.
General Liability protects the business from allegations of bodily injury and property damage arising out of premises, operations, products and completed operations, and advertising and personal injury liability (i.e. wrongful eviction allegations). In addition, property managers and/or lenders will almost always require proof of this coverage naming them as an additionally insured entity.
When entering a contract that requires higher liability limits or to protect additional assets, an excess liability/umbrella policy is recommended and is often required by a lender. The coverage typically exceeds the limit of general, auto and employer liability and is a part of a workers’ compensation policy.
A pollution insurance policy is designed to respond to claims of the release of pollutants into the environment. These policies fill a gap in coverage created by the pollution exclusion in a standard General Liability policy. The policy should include coverage for allegations of bodily injury or property damage as well as clean-up costs and defense relating to the pollution condition.
Cyber insurance should have coverage for both first and third party exposures. A robust program will also include cyber crime coverage. Limited cyber coverage can be embedded within a property, general or professional liability policy, which may or may not be the right solution. Your CAL advisor will know more on which platform is most appropriate.
If vehicles are owned by a real estate group, then coverage must be obtained. Liability does not stop at an organization’s owned vehicles, but is also a concern when employees are driving their own vehicles on the organization’s behalf. Coverage to protect the vehicle in case of theft or damage is referred to as “comprehensive” and “collision” coverage and both should be added in most cases.
Workers’ compensation coverage is mandatory, and proper safety and claim management of the program is essential. As coverage benefits differ from state to state based on varying state labor laws, it is important to inform your insurance advisor before hiring in a new state. New York, in particular, has severe fines for having employees without work comp coverage in place/added to the current policy.
A manufacturer or distributor should consider this coverage if there are outside investors. Each D&O policy should have three sides of protection: One side for the directors and officers not indemnified by the entity, one for the directors and officers indemnified by the entity, and one for the entity itself.
Employment Practice Liability can stand alone or be added to a D&O program. This coverage protects the entity from allegations of wrongful termination, harassment (including sexual harassment) and discrimination. The limit should provide coverage for defense costs as well as any settlement or judgment, when allowable by the policy.