Managing a Loss Prevention Program at Multifamily Building

Property management is a challenging task, regardless of the type of property. Your client’s property will always be exposed to risks, but they can mitigate these risks with a loss prevention program.

What is a loss prevention program?

A loss prevention program contains procedures, safety policies, and other precautionary steps to prevent or reduce the likelihood of insurance claims.

Your client might wonder why you would convince them to have this program on top of getting insurance coverage. However, this program is useful for your clients in maintaining a lower premium rate. A claim today could increase your client’s premium rate next year.

Besides, some insurance policies don’t cover several incidents. There may be times that the insurance policy wouldn’t cover all the expenses involved. Your client might be paying more out-of-pocket costs than the reimbursed claims.

Either way, your client should have a loss prevention program. So, what should be part of this program?

Request System

Your client should have a repair and maintenance request system. Indeed, they could hire someone to check on the residents and the building regularly. But, sometimes, the best way is to let residents bring up their concerns.

An organized request system would make resolving repair issues easier and faster. Your client can also use the data on this system to evaluate the common problems in their rental property. When your client has this data, they can develop a permanent solution or add these issues as part of the insurance coverage.

What should be included in the request form?

  • Resident’s name
  • Address
  • Unit number
  • Contact number
  • Complaint Date
  • Type and Description of complaint
  • Description of
  • requests

Your client should also discuss this system with their residents. The discussion should include who will handle the requests and the maintenance/repair. It should also include a note that the request would be on a first-come-first-serve basis, but critical maintenance must be resolved first.

If your client can identify the order of priority, that would be helpful to their residents. The point here is to be transparent about the repair and maintenance request system.

Keep a list of contact numbers for contractors such as plumbers and electricians for complicated requests. Aside from the request data, your client should maintain a logbook. The logbook should contain information regarding the result of the repair and maintenance.

Incident Investigation

Accidents could happen anytime, and your client should have an incident investigation process to reveal the accident’s cause. Once this cause is known, your client can plan the prevention of such incidents.

A thorough report is the output of this investigation. However, this program shouldn’t supersede formal investigation from police officers in criminal incidents.

For accidents and incidents, your client can do the following tasks:

  • Gather data about the injury and ask the victim what happened.
  • Survey the area where the incident happened and take photos.
  • Discover the equipment or activity that led to the incident.
  • Ask witnesses if applicable.
  • Create and implement corrective and preventive measures.
  • Call for the right authoritative body for extraordinary or crime-related incidents.

Building and Safety Code

Your client should follow the building and safety code strictly. These implemented safety codes tell the residents that your client is serious about safety to gain the trust of their residents.

Also, your client should work with a professional and licensed contractor to ensure your client’s building is compliant with the safety code.

Certificates of Insurance

The most critical part of a loss prevention program is having Commercial Insurance New York. If your client has a property manager, the property manager would be tasked with regularly reviewing the coverage.

The property manager collects certificates of insurance from building owners. So, your client must maintain a certificate of insurance (COI) with complete details.

The COI must include the correct name of your client as indicated in the policy. The details on the policy should be the same as COI.

A loss prevention program is essential to gain the trust of residents. Your client shouldn’t postpone making one. If your client doesn’t have one, convince them of the program’s importance with a buy-in option. Also, convince them about the importance of insurance coverage.

About Snyder Specialty

Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039.