Most real estate business owners recognize that having adequate insurance coverage is essential, since the cost of real estate liability can be high. However, when buying real estate insurance in New Jersey, many business owners miss out on two important coverage areas. Although these policy additions may not be essential for every real estate business, for many, they can prove invaluable.
Directors and Officers Liability
This coverage protects directors and officers, along with the company itself, against claims of wrongdoing or mismanagement resulting in financial losses. Directors and officers liability coverage can protect the personal assets of directors and officers, reimburse the company for settling claims, and provide coverage for securities claims. This insurance allows directors and officers to perform necessary duties instead of being restricted by fear of making a mistake and facing a liability claim.
As sensitivity to environmental changes and the effects of pollutants increases, many real estate businesses can benefit from taking out a pollution liability policy. For real estate developers and managers in particular, preventing or limiting pollution can be difficult. Even when pollution is inadvertent or limited, damage costs can be high. Pollution liability coverage can protect against isolated accidents or systematic but unintentional pollution.
Choosing Ideal Coverage
In most cases, adding these coverage options to a policy for real estate insurance in New Jersey can help businesses address significant areas of risk. Of course, real estate business owners should speak with an insurance agent about whether these options make sense. Certain businesses may have even more pressing areas of liability that need to be given priority and primary coverage.