FAQs about COI for Property Managers
1. What is a COI, and why is it necessary for residential and commercial property managers?
A Certificate of Insurance (COI) is a document issued by an insurance company that provides proof of insurance coverage for commercial property management companies. It outlines the types and limits of insurance, ensuring that the manager has adequate coverage to protect their clients and the properties they manage.
2. How does a person who owns properties benefit from requiring a COI?
Certificates of insurance act as a risk management tool against legal liability, a lawsuit, or other issues that could cause financial hardship or professional setbacks. Requiring a COI from residential and commercial property management companies provides peace of mind to people who own properties. It ensures that the manager has the necessary insurance coverage to protect against potential risks and liabilities associated with property management, like property damage, bodily injury, or errors and omissions.
3. Can residential and commercial property management companies be held liable if they don't have proper insurance coverage?
Yes, without proper insurance coverage, management companies can be held liable for any damages or losses that occur during the course of their management employment. This could result in major financial burdens, legal consequences, and reputational damage for both the management company and the owner.
4. What should you look for when reviewing a COI?
When reviewing a COI, people who own properties should ensure that the management company's coverage limits and types of insurance align with their specific needs. They should also verify that the COI includes the owner as an additional insured party and that the insurance policy has not expired.
5. What steps can commercial property managers take to streamline COI management?
To streamline COI management, commercial property managers can utilize technology solutions, like those from TrustLayer, that automate the COI collection, review, and expiration tracking process. Implementing an online system or software can reduce administrative burdens, ensure compliance, and improve overall efficiency.
Our mobile app can be used for insurance tracking, general liability protection, tracking certificates of insurance, follow-up automation, vendor management, outsourcing risk management, and so much more.
Disclaimer: Please note that these FAQs serve as general guidance, and it is always advisable to consult with a professional insurance advisor or legal counsel when dealing with specific project requirements and insurance matters.