Do You Know Who Your Property Management Vendors Really Are? - Property Management Insider

In today’s high-risk business environment, small mistakes can have big consequences. For apartment property owners and managers, hiring a company to provide apartment supplies and services without doing a little background work can result in lost time and money, and even reputational damage.

According to industry reports, a significant number of vendors or contractors haven’t been doing a good job of housekeeping. More than 45 percent have experienced a lapse in general liability coverage in the past two years; 31 percent have had a lapse in auto liability coverage in the past two years; and 11 percent have relevant derogatory information in their file.

A vendor without insurance can be a walking time bomb. For example, if a painter without worker’s compensation insurance falls off of a ladder and is injured while working on property, they can easily seek damages against the property. The management company’s worker’s compensation carrier is likely to settle, which could increase the property’s insurance premium. That scenario grows exponentially worse if a resident is hurt by the fall and seeks damages.

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