Being a Director of a residential property management company is a job with a lot of responsibility. Whilst accountable for administrative duties and decisions regarding the property, these volunteers may be liable for any financial losses that may occur as a result of their negligence. Being insured is therefore vital. Here are 5 benefits of protecting yourself with Directors & Officers liability insurance:
1. Legal protection for residential management company Directors
In the event of financial loss, Directors or Officers of the block may be sued by a resident or third party. Directors & Officers liability insurance, however, provides legal protection for the liability of individuals involved and ensures they are not held accountable for any errors resulting in a fiscal loss.
2. Prevention of costly scenarios
Directors & Officers liability insurance is an inexpensive measure that prevents costly scenarios in the future. For example, should a resident or third party make allegations against you as Director of the block of flats, Directors & Officers liability insurance ensures you are covered.
3. Legal protection over actions of previous Officer
For new Directors and Officers of residential management companies, Directors & Officers liability insurance is a simple way to protect against wrongdoings of the previous Officer. Whether it’s an omission of previous block of flats insurance or an error regarding block management, investing in Directors & Liability insurance is an easy way to ensure you aren’t held responsible for the previous Director’s actions.
4. Prevention of lengthy legal battles
Being responsible for a residential property management company means you are liable for any allegation towards the running of the property. Therefore, investing in Directors & Officers liability insurance is an effective preventative measure against having to engage in any time consuming legal battles.
5. Peace of mind
Regardless of the situation you find yourself in as Director of a residential block management company, investing in liability insurance is the best way to give yourself peace of mind that you are covered legally and financially.
To get a quote for Directors & Officers liability insurance or find out more information on block insurance policy, call Flats Direct today on 01202 862 660 or 0800 731 6242 (Freephone).