14A — October 16 - 29, 2020 — Insurance/Title — Financial Digest — M id A tlantic Real Estate Journal


I nsurance /T itle

he overuse of the word unprecedented is un- precedented. Word By Neil Owens, E.B. Cohen Insurance and Risk Management Reducing uncertainty through effective Risk Management strategies T standards that could make you dizzy. How could anyone comply? We have already we make today necessitate thoughtful RiskManagement advice and best practices one needs to identify the ex - posures. Next, the risks need to be measured and assessed.

thought partner through this process is critical. One consideration makes Risk Management decisions more important than ever: the insurance marketplace trends have shifted dramati- cally in recent months, and the pandemic has acceler- ated this shift. Umbrella and Excess Liability premiums that have increased dramati- cally, while the insurance companies offering coverage have reduced capacity and increased cost. Not since the late 80’s has the insurance market for excess liability coverage been so difficult, a so-called “hard market”. Property and General Lia- bility rates have been steadily rising over the past several years, and this year that trend has accelerated some- what. Even for low-claim, well managed properties, it is not surprising to see per- centage increases in the high single digits. The single best way to address the market- place trend is to operate with best practices, including a well-maintained property and utilizing proper risk transfer. We have observed that prop- erty managers with robust processes in place to handle contractor agreements usu- ally are the property man- agers that can achieve the most competitive insurance terms, because they not only transfer the risk, but are also able to show the insurance company that they are in-fact utilizing best practices. The process should in- clude the following simple components: verifying who authorized signers of the agreement are (who should be trained on risk transfer fundamentals), making sure all agreements include both proper indemnity (in favor of the owner) and insurance terms; the executed agree - ment and evidence of insur- ance are documented before the work begins. In these uncertain times, Risk Management has never been more important, and due to the insurance market- place, the stakes of failing to implement best practices have never been higher. Neil Owens is a prin- cipal, senior vice presi- dent and team builder at E.B. Cohen, Neil manages the commercial practice group. MAREJ

play aside, we i n t he commercial industry face uncer ta in- ties that re- quire an el- evated sense of Risk Man- a g e m e n t .

In these uncertain times, Risk Management has never been more important, and due to the insurance marketplace, the stakes of failing to implement best practices have never been higher.

heard pool professionals in- dicate that they are either unable to comply or unable to accept the responsibility of their work. And who can blame them? The decisions

implementation. Though the regulations and issues keep changing, the pro- cess to make decisions from a Risk Management perspec- tive remains the same. First,

After that, evaluate the pos- sible solutions, including risk mitigation. Lastly, imple- menting solutions and moni- toring the results. Partnering with a professional to have a

Neil Owens

The complexities of operating a commercial building are rapidly increasing. In early June operators were faced with a set of outdoor pool

YOU R L I A B I L I T Y I N S U R AN C E U NQU E S T I ONA B L Y H A S A P O L L U T I ON E X C L U S I ON That means no protection against direct and indirect liability losses, and property devaluation, caused by mold, bacteria, legionnaires disease, oil spillage, lead, and many more pollution-related claims. E. B. Cohen Insurance and Risk Management has solutions and coverages to fill this gap in your security.


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