Real Estate Risk Management

MFGunderstands the unique demands and exposures for Real Estate risks. Our service platform for the Real Estate industry tailors a program designed to fit your unique needs. For your risk transfer resource, contact a MFG risk consultant for more information about developing or enhancing your risk management program. We consult for a broad range of Real Estate risks: Property Managers, Developers, Shopping Centers, Office Buildings, Vacant Real Estate, Mobile Home Communities, Coops and Condominiums.

MFG Insights

As an example, shopping centers are property exposures, owned and available for rental to store operators. The centers can have as few as five tenants or may be large mall-type mega centers. They may have total responsibility for parking lots, sidewalks and all maintenance or they may make arrangements for the primary tenant to handle all such duties. Each shopping center owner sets the condition of the lease, and that determines his or her ultimate liability. Follow the contract to determine the liability.

Property exposure is determined by the tenant. In order to truly determine the exposure, the nature of the tenant must be exposed and evaluated. A complete list of tenants is always necessary. Vacancies can be a major cause of concern. Vacancies can indicate a financial problem. Other property concerns are the age, condition, and repair of the building, the size and configuration of the building and the roof expansion, and the condition and structure of the roof.

Premises liability is a major exposure, not only within the premises and common areas, but in the parking lots, on the adjoining sidewalks, and in any parking structures or other common areas. Floor coverings must be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Sufficient exits must exist and be well marked, with backup systems in place in case of power failure. Are there special events? What are they? What are the contractual relationships? Are there certificates of insurance on file? The additional insured status must be considered. Parking lots and sidewalks need to be in good repair and generally level and free of exposure to slip and fall. Snow and ice should be removed promptly. Security of visitors in parking areas is rapidly becoming the responsibility of the owner or operator of the premises. Is there adequate exterior lighting? What other security measures are in place?

Workers compensation can be a concern for those employees who clean, repair, or maintain the premises. The most common claims are for lifting, back injury, hernia, sprain, and strain. What kind of training do employees receive, and what types of material lifting or conveying devices are used?

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