As a growing property investor, you may have just closed on a large, multi-unit development and are in the process of setting everything up so you can welcome your first occupants. You will undoubtedly put in place a strata management team to deal with all the varied issues that will inevitably arise and will need to appoint a resident unit manager to be the principal link on the ground. This is a challenging task by itself, and you will certainly need to appoint somebody who is very competent. However, you must also make sure that they are adequately protected from the various risks that they will face, so what do you need to consider?
Protecting Your Key People
It may be unfortunate, but Australia is a very litigious society these days, and in this type of dynamic environment, don't be surprised if a lawsuit should spring up from time to time. You will need to protect your resident unit manager from exposure in this case, and you will need several layers of insurance as a consequence.
Public and Professional
For example, somebody may make a claim that the property was not maintained properly, causing them to slip and fall due to defective equipment. Public liability insurance can be used in such a situation, and this will help protect the manager from a personal claim against them as the representative of the organisation. They will also need professional insurance coverage as well, however, as this will cover errors and omissions that may have led to poor decisions, equipment failure and subsequent injury.
Expect the Unexpected
Don't forget that not every claim is authentic, and some people may be inclined to press forward with a case just to try and test your resolve and financial backing. This is part of the challenge as a property investor or owner, and you simply have to cover yourself from all angles.
As you may know, risks exist in all shapes and sizes, and it's important to get coverage that is tailor-made for your specific exposure. If you don't, you could face a crippling lawsuit and financial ruin from an investor perspective, but you must always ensure that those people who are involved in day-to-day operations have their own protection. After all, you cannot expect them to take these risks without this assurance and should ask your broker to come up with a package that covers all possible eventualities.
For more information on resident unit manager insurance, contact your local insurance service.Share