Real Estate Developers and Owners

Tailored industry coverage

 

Why purchase tailored coverage?

Many A&E forms are not adequately designed to cover the vast array of exposures faced by a real estate owner/developer that can arise from a multitude of venues. We provide tailor made protection for real estate professionals and owners/developers for professional liability exposures through all phases of acquisition, construction, operations and divestiture.

 

Coverage & Benefits

With a Hiscox RED Policy, the Insured has the ability to choose coverage applicable  to their unique risks and exposures. Clients can choose to purchase coverage solely for their Real Estate & Property Management Services, their Construction and Development activities, or they can purchase all the coverages to provide an end-to-end solution for their professional services. 

  • Available coverage options include:

    • Construction Management Services: includes property management and owners representative services performed on owned and non-owned projects and developments
    • Contractors Professional Liability: includes Contractors Pollution Liability and Rectification coverages, offered by endorsement to cover construction professional and pollution exposures for developers acting as their own General Contractors
    • Owners Construction Professional Liability: covers the project developer/owner for vicarious third party liability arising out of acts, errors or omissions of construction sub-consultants
    • Owners Protective Professional Indemnity (OPPI): covers the project developer/owner for financial loss (including cost overruns and delays) arising out of subcontracted design errors
    • Real Estate & Property Management Services: includes sales and leasing and coverage for allegations of tenant discrimination or violations of the Fair Housing Act
  • Coverage benefits:

    • Named Insured includes Subsidiaries, Joint Ventures and Special Purpose Entities/LLC's
    • Coverage for claims from tenants, buyers, investors and other third parties that arise out of Real Estate, Construction and Development Services
    • Policy can be purchased on an annually renewable, rolling project or project specific basis

 

  • Coverage enhancements:

    • Media and Advertising
    • Crisis Management
    • Pre-claims Assistance and Additional Payments
Appetite & Capacity
  • Commercial, residential and industrial real estate developers and project owners
  • Real estate professionals performing sales, property management, and construction management services
  • Capacity: Up to $10m
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Claims scenarios 

Not sure what risks our tailored Real Estate Developers/ Owners Form covers? We’ve brought some scenarios to life.

Real Estate

A commercial property manager was named in a class action lawsuit from a group of tenants alleging their landlord participated in a scheme to inflate their rent above the amounts legally permitted under NYC rent stabilization laws. A Hiscox RED Policy would defend the insured for multiple years throughout their lawsuit and contribute to any final awarded damages.

Real Estate

A commercial property manager was named in a class action lawsuit from a group of tenants alleging their landlord participated in a scheme to inflate their rent above the amounts legally permitted under NYC rent stabilization laws. A Hiscox RED Policy would defend the insured for multiple years throughout their lawsuit and contribute to any final awarded damages.

Construction & Development

A developer signs a lease agreement with a retail tenant for a new mixed used development and agrees to provide custom fit out for the tenant. Completion and tenant move in gets delayed for three months due to building mechanical and electrical design errors. Developer is liable to the tenant for delay damages and loss of revenues. The developer also incurs additional costs for redesign and construction and financial loss arising out of loss of rental income. The mechanical and electrical engineer responsible for the errors tenders their insurance policy contributing $500K to damages. A Hiscox RED policy would cover the Insured developer for all remaining and unrecoverable loss arising out of the sub consultant’s design errors.

Construction & Development

A developer signs a lease agreement with a retail tenant for a new mixed used development and agrees to provide custom fit out for the tenant. Completion and tenant move in gets delayed for three months due to building mechanical and electrical design errors. Developer is liable to the tenant for delay damages and loss of revenues. The developer also incurs additional costs for redesign and construction and financial loss arising out of loss of rental income. The mechanical and electrical engineer responsible for the errors tenders their insurance policy contributing $500K to damages. A Hiscox RED policy would cover the Insured developer for all remaining and unrecoverable loss arising out of the sub consultant’s design errors.