Reducing Insurance Costs for Apartment Owners and Managers via Multihousingnews.com

Apartment ownership and management can be a risky business. The property itself, the resident’s usage of your property and your operations of the facility all involve risk. Apartment owners and managers protect themselves from this risk by purchasing insurance. While insuring your business is mandatory, the actual cost of your insurance program is still largely in your control. The most effective way to reduce your business’s exposure to loss and the corresponding costs associated with it is to leverage another party’s insurance policy—a policy that won’t cost you money. In risk management terms, we call this contractual risk transfer.

All standard commercial insurance policies provide the ability for one party in a contract to assume the tort liability of another party. While the specific policy language can vary, your vendors and service providers have the ability to assume your liabilities, thereby reducing your risk profile and insulating you and your insurance program from losses. This is important because your insurance cost is based on four criteria:

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