The COVID-19 pandemic is affecting all sectors of the real estate industry requiring professionals to adopt new business practices, implement different technologies and modify day to day operations. The impact of these changes on professional liability claims has yet to take shape, but there are individuals in the real estate community that face an increased risk.
Real estate professionals providing property management services face an expanded E&O risk stemming from rapid changes that may have been implemented to help prevent the spread of COVID-19 and observe social distancing practices. Some of the new professional hazards faced by property managers include:
- Failure to perform mid-lease or annual property inspections
- Failure to perform routine maintenance
- Alleged loss of rental income for failure to show properties
- Misrepresentation when an electronic or virtual tour has been utilized
- Alleged discrimination
- Wrongful eviction
The Victor Real Estate E&O program maintains a broad definition of professional real estate services allowing property managers and other covered professionals to quickly adapt business practices to meet changes in the market condition and maintain peace of mind. For more information, please reach out to your Victor Underwriter.
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