AB Tips For Dealing With Commercial Property
Agents placing insurance for landlords should focus on documentation and procedure, according to a legal expert.
When it comes to writing a risk, the one question agents should ask is if they are comfortable writing this risk, said Alan Kaminsky, an insurance defense attorney with the law firm of Wilson, Elser, Moskowitz, Edelman & Dicker LLP, in New York City.
Determining that level of comfort should depend upon the procedures and documentation the landlord has in place to deal with maintenance issues, he said. That documentation includes work orders and related paperwork, he explained. "If there are too many oral agreements, you cant defend that," he observed. "If someone complains about a maintenance problem, how do you prove the problem was resolved?"
"It is one thing to say you responded in 24 hours, but to have it in writing and have it signed off as complete is another."
The important point from a safety and loss control standard is to educate the policyholder, says Pete Scala, a safety consultant at the insurance brokerage firm of E.B. Bowman in New York City.
If there is the slightest hint of a liability issue, the insured needs to address the problem immediately. The quicker the problem is dealt with, the less likely there is a chance for a frivolous lawsuit, agents are advised.
Agents should pay particular attention to lead paint care and maintenance issues, reviewing information on annual inspections of apartments and documented checklists of what was inspected, said Mr. Kaminsky.
"At the end of the day, there is only one question: Was the landlord negligent," said Mr. Kaminsky. "If everything is documented, and there were no complaints, it can go a long way to defending the case. But oftentimes they do not take the time to do it."
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, February 27, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.
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