As a landlord, you’re familiar with common risks like property damage or tenant injuries. However, there are other, less obvious concerns that can lead to legal trouble and financial losses if not addressed proactively. In this blog post, we’ll explore some of these little-known liability issues and provide strategies to mitigate them.

• Breach of Tenant Privacy: In an age where privacy is paramount, rental property owners must be vigilant about protecting their tenants’ personal information. This includes everything from Social Security numbers to credit reports and lease agreements. A breach of tenant privacy – whether through negligence or a targeted cyberattack – can lead to significant legal repercussions, including fines and lawsuits.
• Mold and Environmental Hazards: Mold and other environmental hazards pose serious health risks and can lead to costly lawsuits. Proactive measures like routine inspections, quick remediation, and detailed record-keeping are your best defense.
• Illegal Tenant Activities: Landlords can be held liable for illegal activities on their property, even if they were unaware of them. Careful tenant screening, regular inspections, and addressing concerns promptly can minimize risks.
• Discrimination in Tenant Selection: Fair housing laws prohibit discrimination based on race, religion, gender, and other protected characteristics. Familiarize yourself with these regulations and implement fair and transparent tenant selection procedures to avoid legal complications.
• Negligent Security: Inadequate security measures can lead to liability if a tenant is injured due to a preventable crime. Prioritize tenant safety by investing in proper lighting, strong locks, and effective security systems.
• Data Breaches and Cyberattacks: If hackers gain access to your systems and steal sensitive financial information, such as bank account numbers or payment details, both you and your tenants could face substantial financial losses. Protecting this information and having insurance coverage is essential.

How Millers Mutual Insurance Can Help

At Millers Mutual Insurance, we offer a range of insurance products to protect you from a variety of risks associated with owning rental properties. Here’s how some of our coverages can help:

• Businessowners Policy (BOP): This comprehensive policy combines essential coverages for rental property owners, including property insurance for your building and its contents, general liability protection against tenant injuries or property damage claims, and business income insurance to cover lost rental income if your property becomes uninhabitable due to a covered event. This all-in-one solution offers convenience and peace of mind, with tailored options to meet your unique needs.
• Employment Practices Liability Insurance (EPLI): This coverage isn’t limited to employee lawsuits; it also extends to third-party claims. If a current or prospective tenant accuses you of discrimination, EPLI can provide crucial financial protection against a costly lawsuit.
• Data Response & Cyber Insurance: If you use technology to manage your rental business, you’re at risk of cyberattacks. Our Data Response & Cyber Insurance covers first- and third-party damages, legal defense costs, business interruption losses, industry fines, and more. Limits of up to $1 million are available.
• Commercial Umbrella Insurance: For an extra layer of protection against liability claims that exceed the limits of your general liability policy, consider our Commercial Umbrella Insurance. Coverage of up to $5 million is available to safeguard you from significant financial losses.

Are You Covered?

Millers Mutual Insurance offers a range of comprehensive insurance products to help you manage these risks and ensure the long-term success of your rental business. Learn more about our rental property solutions and reach out to a Millers Mutal agent with any questions.