Amenities are one of the many reasons why someone chooses to live in an apartment building, HOA, or condo unit. Not only do they like the overall layout of the home that they’re planning to rent or buy, but they also like the many perks that come with the property, like pools, gyms, game rooms, and clubhouses. The downside is that while these amenities attract buyers or renters, they can also attract lawsuits, especially if there isn’t a “no liability” clause in the paperwork.
What happens if you, the property owner, doesn’t carry liability insurance on these amenities? Your business could be held liable for everything that goes wrong in these shared areas. Let’s explore the available options.
Liability Concerns with Pools, Gyms, and Clubhouses
There are a lot of things that can go wrong when tenants are using the amenities in your building, such as:
Pools – People run the risk of injuring themselves on the surface around the pool if they are running around or engaging in horseplay. There’s also the possibility of people drowning if there isn’t a lifeguard present. However, having a lifeguard opens up other liabilities because they could get sued for accidentally injuring someone while saving their life or for missing an incident that leads to injury.
Gyms – What can happen in a gym? Someone could slip on a wet floor, accidentally drop a weight on their foot, or fall off a treadmill and get injured. Even if you have a trainer or employee in place to keep an eye on things, accidents will still happen.
Clubhouses – Apartment and condo clubhouses tend to have rentable spaces for parties (where you run the risk of someone choking, slipping, or getting injured in a myriad of ways), as well as fun spaces, like billiard rooms. No matter what’s included, you need to make sure that you have the right insurance coverage, just in case.
Liability Insurance Options
When it comes to the potential for lawsuits due to accidents that happen on your property, you need to ensure that you have your back (and bank account) covered. There are two different types of liability insurance that can prevent you from having to pay out of pocket for costly accidents. These include:
General Liability – A general liability policy will protect your business should it be found liable for an accident in a pool, clubhouse, of gym. These policies are often part of a regular business owners’ policy, and they will provide funds for a settlement or more, up to a certain monetary value.
Umbrella Liability – Your umbrella liability policy kicks in when your general coverage is maxed out. An umbrella policy will provide fund beyond those of your standard liability policies and are a good idea to have in place, should you be worried about expensive lawsuits due to your complex’s amenities.
Have Questions? Contact Charlotte Insurance
Want to learn more about general and umbrella liability for apartment buildings and condos? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your building needs.