Commercial Property Managers: The Importance of Being Listed as Additional Insured on Your Property’s Insurance Policy

What Does It Mean to Be Listed as Additional Insured? In the world of commercial property management, one of the most important aspects of managing risk and protecting interests is ensuring proper insurance coverage. Being listed as an additional insured means that the commercial property manager and management company are added to the property’s liability insurance policy, and gain some of the coverage provided by that policy. This can include coverage for liability claims that arise out of the property manager's regular activities while managing the property, such as accidents, injuries, or property damage. It extends protection to the property manager without the need to purchase a separate policy.

Risk Mitigation - In the event of a tenant, vendor or visitor suffering an injury on the property and filing a lawsuit, being listed as an additional insured ensures legal costs and any settlements or judgments that are covered by the property’s insurance policy. Without this coverage, the property manager and management company may face the financial burden of defending against claims or paying damages out-of-pocket.

Streamlining Claims Process - Being listed as additional insured also simplifies the claims process. If a liability claim arises, having you and your company listed ensures that you can file a claim directly with the property’s insurance provider, helping to expedite resolution of the claim and reduce administrative burden.

Notification of Changes in Coverage - Given the crucial nature of insurance coverage, being aware of policy chances is paramount. The insurer has an obligation to inform insured parties of changes in coverage, as an additional insured you will be made aware of any policy changes.

Building Stronger Business Relationships - For property owners, listing the property manager and management company as additional insured is easy to do and involves little additional premium cost. It demonstrates a proactive approach to protecting both the property and everyone’s financial interests and instilling confidence among all stakeholders.