The property administrator is the person chosen by the Board of Owners for the technical management of the community, being responsible for the contracted services working correctly, as well as for forecasting expenses and managing budgets. A delicate function that requires adequate insurance coverage.
What Insurance does a Property Manager need?
A property administrator needs to protect himself against civil liability claims for the damages that he may cause to third parties (mainly the owners) in the development of his professional activity, such as the negotiation of contracts, the execution of works, the procedures with the different administrations, etc.
Professional Civil Liability Insurance
The civil liability of the property administrator is the so-called Professional RC, which covers those errors or negligence that he commits during the development of his activity and that generate economic, personal or material damage to a third party.
Possible Claims for the Property Administrator
The property administrator may be liable for damages caused to third parties in the performance of their duties (such as mismanagement of accounts, payments and community expenses) and for omission of acts (such as the lack of notice of cancellation of an insurance contract or exceed the deadlines for an inspection).
- Primary patrimonial damages.
- Defense expenses.
- Loss of documents.
- Illegitimate interference in the right to honor or privacy of a third party.
- Employee dishonesty.
- Data protection for light sanctions.
- Defense expenses for claims derived from non-compliance or unauthorized use of registered trademarks.
- Optionally, other types of RC can also be covered, such as Exploitation and Employer’s.
Civil Liability of Exploitation
With this coverage, the property manager covers the obligation to repair the damages caused to third parties in their property or personally by the exercise of their professional activity.
Employers Liability
This coverage is interesting when the property manager has dependent employees, since it protects him against claims from his workers for personal injuries in a work accident.
Other Insurance Necessary for Property Manager
As a professional, it is interesting that the property manager also assesses the contracting of other specific insurances, such as the RC Autónomo or the D&O.
Autonomous Civil Liability Insurance
Includes coverage such as accidents, sick leave, professional disability, Health and Life. It is common for it to be offered with Civil Liability insurance.
D&O insurance
It is broader than that of RC, since it extensively protects the personal assets of property administrators against claims from third parties who have been harmed by incorrect acts committed in the exercise of their functions.