Owning a manufactured home community may come with more risks than you realize. While there are many steps you can take to lower risks and prevent accidents, liability coverage remains essential to protect your business and the community. This type of coverage can shield your business from unexpected expenses that would otherwise be a big financial hit or even put you out of business. Understanding why liability coverage for manufactured home community owners is important and what to look for in a policy can ensure your business is protected.
What is Liability Coverage?
Liability coverage protects you by covering claims if someone is injured or experiences property damage while on your premises. These policies cover claims for bodily injury, property damage, and legal defense expenses. If the company believes a settlement is wise, they will handle that too.
Why is Liability Coverage for Manufactured Home Community Owners Important
There are many high-traffic areas in a manufactured home community. There are also many residents living in the community plus visiting guests, trespassers, and contractors coming and going from the community. This high traffic can increase the risk of accidents.
Common Liability Risks:
Slip and Falls
Playground Accidents and Other Community Amenities
Animal Attacks
Property Damage
Criminal Activity and Assaults
Traffic Accidents
Trees falling on people and property
Types of Liability Coverage
General Liability – This type of policy covers legal defense and indemnification for claims of bodily injury and property damage caused by your alleged negligence. This could be a resident tripping over uneven concrete and sustaining an injury, or a child falling off playground equipment and needing medical attention.
Excess Liability – This policy adds extra protection if the claims exceed the general liability maximums. For example, if a lawsuit requires you to pay $2 million, but your general liability policy only covers $1 million, the excess liability policy could cover the difference up to the limit of the excess liability coverage.
Pollution/ Environmental Liability – This policy fills in the pollution exclusion included within general liability insurance policies. It protects against hazardous material claims, such as mold, septic or plumbing issues that cause damage or harm. This could include covering costs after the septic system backed up and flooded residents’ homes or claims after mold exposure in a community-owned building or amenity.
What to Look for in a Policy
When choosing liability coverage, you need a policy that is specific to your community’s needs. Make sure the limits in the policy align with the size of your property and the risks involved. Also, read the exclusions. Most policies start by offering broad coverage and then taking some away via the noted exclusions. Our team can help you find a policy that fits the needs of your business.
For more insurance tips for your manufactured home community, visit our resources page here, and learn more in our blog here.