Within the broad real estate industry, there are many niches that exist to satisfy specific consumer demands. A specialized insurance program may be necessary when operating certain residential solutions such as a planned unit development (PUD). When venturing into less-trodden territory without a proper planned unit development insurance plan, certain risks need to be considered.
1. Commercial Liability
In circumstances where a property manager or homeowner’s association is responsible for common areas in a residential complex, there are genuine liability concerns. While residents in a PUD are responsible for the goings-on within their own property, managers will be held liable for incidents that occur in shared areas.
2. Cyber Threats
A property business serves customers, just as any other business does. This means that operators store sensitive information about residents which would be prime targets for cybercrime. Even with powerful countermeasures in place, an added layer of financial security in the form of cyber liability insurance will grant extra peace of mind.
3. Workers Compensation
Property management businesses that employ even a single worker need to have workers’ compensation plans in place. Accidents can occur under any circumstances when operating a business, so protection against a potential lawsuit is vital.
Business owners in any industry should always be aware of potential insurance risks that can be avoided. This is all the more true in growing niches such as the planned unit development sector.