Real Estate

Due to the value of the properties they manage, each real estate business owner is already faced with different exposures than many other entrepreneurs. You should protect your portfolio against common industry risks to ensure it can continue to be a valuable investment in the long term.

You can combine a range of coverage lines—from commercial property insurance to catastrophic and liability coverage—to protect your assets. This is what’s known as portfolio insurance.

Given the costs associated with construction stoppages and accidents, you should also safeguard the projects that are still in the development phase. For larger projects, builder’s risk insurance and owner’s protective professional indemnity coverage are necessary to guard against the contractors’ and design firms’ risks.

Marsh McLennan Agency offers dedicated services tailored to real estate businesses, including:

• Budgeting services for acquisitions and dispositions
• Catastrophic risk modeling
• Claims advocacy
• Contractual risk transfer with vendors, contractors, and tenants
• Lender compliance
• Negotiations of insurance requirements
• Property valuation assessment
• Risk control
• Transaction management

Professional liability insurance can help defend service providers in the real estate industry from incalculable risks. For instance, new homeowners could be experiencing buyer’s remorse, or prospective tenants might claim to have been discriminated against at an open house. In these cases, professional liability coverage can help cushion the resulting legal costs or processing fees.

This type of coverage may include unfortunate events that aren’t unique to the real estate business, such as reimbursement in a crisis event.

Professional liability usually doesn’t cover instances of bodily injury or property damage. However, you can protect your business against those risks with dedicated coverage such as general and excess liability or commercial property insurance. Since your assets and exposure will differ from the next real estate business, it’s best to talk to a Marsh McLennan Agency consultant to determine which coverage your enterprise needs.