Apartment Buildings Need Supplemental Legal Defense Insurance
Investing in and owning an apartment complex creates numerous responsibilities, including maintaining the entire property, ensuring tenant satisfaction, and complying with various laws and regulations. Standard insurance policies often have many gaps and loopholes; however, a supplemental legal defense insurance policy can effectively address these deficiencies. BOLD can offer crucial protection for property owners to help safeguard their interests by representing them in legal proceedings.
What is Supplemental Legal Defense Insurance?
Supplemental legal defense insurance is a specialized insurance policy designed to cover legal expenses that may arise from lawsuits or legal disputes when your primary insurance policy denies coverage. A carrier will either deny coverage or refuse to defend a claim under a “Reservation of Rights”, which notifies the insured that the insurance company is still investigating the claim with the right to deny in the future. During this review, insurance companies may look to find policy exclusions or ambiguities to deny the claim. This is when BOLD takes over and provides total representation in litigation from beginning to end.
Apartment Complex Risks
Apartment buildings can face various liability claims, including those related to certain personal injury incidents, property damage, environmental hazards, breach of contract, subrogation, natural disasters and many more. When the general liability and commercial property policy restricts or denies coverage, BOLD will defend the apartment complex and its owners. In addition, primary insurance companies may occasionally fail to respond promptly to a lawsuit. If a lawsuit is filed against your property and the court does not receive a response within the 20-day deadline, a default may be entered against you. If this situation arises, you may be liable for monetary damages and face additional legal consequences.
Comprehensive Coverage is an Important Part of a Risk Management Portfolio
Legal fees can accumulate quickly, especially in complex cases that require extensive legal representation. BOLD Insurance helps mitigate the financial impact of these expenses, allowing property owners to maintain their financial stability and avoid unexpected costs that could jeopardize their operations. Incorporating legal supplemental defense insurance into a risk management portfolio demonstrates a proactive approach in addressing potential risks. This insurance acts as a safety net, allowing property owners and managers to focus on other aspects of their operations while knowing they have protection in place.
If you own an apartment complex, consider discussing supplemental legal defense insurance with an insurance professional today. Protect your investment and ensure the longevity of your property ownership success.