General Liability
General liability insurance protects apartment building landlords and condominium association boards from financial losses due to third-party claims of bodily injury, property damage, or personal injury that occur on the premises or as a result of property-related operations.
Key Coverage Areas for Landlords and Condo Associations
- Bodily Injury Coverage
This covers medical costs, legal fees, and potential settlements if a tenant, guest, contractor, or visitor is injured on the property.
Example: A tenant slips on an icy walkway in front of an apartment building and suffers a serious injury. General liability insurance helps cover medical bills and legal defense. - Property Damage to Others
Protects against damage caused to someone else’s property due to maintenance issues, construction work, or property operations.
Example: A leaking pipe in a condo unit causes damage to a tenant’s personal belongings or a neighboring unit—this coverage can help with repairs and replacement costs. - Personal and Advertising Injury
Covers claims of slander, libel, wrongful eviction, and false advertising—especially important for condo boards managing communications with residents and the public.
Example: A resident accuses the condo board of defamation after a dispute is detailed in a public newsletter—this protection helps with legal costs. - Legal Defense and Court Costs
Provides for the cost of defending against lawsuits, even if the claims are groundless. This is especially valuable for landlords and associations facing disputes from tenants, vendors, or neighbors. - Medical Payments for Minor Injuries
Offers limited, no-fault coverage for minor injuries occurring on the property to prevent more serious claims.
Example: A guest trips over uneven pavement outside the apartment complex and needs stitches—this part of the policy can quickly handle the expense.
What General Liability Insurance Does Not Cover
Although this coverage is broad, there are clear exclusions that property owners and condo associations need to be aware of:
- Damage to Owned Buildings or Units – General liability doesn’t cover damage to your own structures. You need commercial property insurance or building coverage for that.
- Employee Injuries – Injuries to maintenance staff or property managers fall under workers’ compensation, not general liability.
- Professional Mistakes – Errors in legal decisions or financial mismanagement by board members require directors and officers (D&O) insurance.
- Tenant Disputes Over Leases – Legal issues surrounding lease violations or rent collection may not be covered unless specified in an added endorsement.
- Intentional Acts or Negligence – If the board or landlord knowingly allows unsafe conditions or acts unlawfully, coverage may be denied.
- Auto Liability – Vehicles used by the property (like maintenance vans) require commercial auto insurance.
Why It Matters
For landlords and condo board members, general liability insurance is not just a safeguard—it’s a critical part of property management. Lawsuits and accidents are unpredictable, and this policy provides essential protection against the financial impact of claims arising from everyday risks on the property. When paired with other policies like property insurance, workers’ comp, and D&O coverage, general liability forms the backbone of a solid risk management strategy.
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