What is the importance of insurance certificates and what types of coverage should a building manager obtain?

• A. Property insurance only is sufficient.
• B. General liability and property coverage are optional.
• C. Workers' comp, builder's risk, and interruption of business should be considered along with property and general liability.
• D. No insurance is required for building managers.

Answer: (C)

A building manager faces a range of risks from physical damage to people and operations, so a broad insurance plan is essential to protect finances and continuity. The most complete approach includes property coverage to repair or replace the building and its contents, and general liability to cover claims of injury or damage from the building’s operations. In addition, workers’ compensation is needed to protect employees who might be injured on the job. When renovations or construction are happening, builder’s risk coverage fills gaps that standard property policies often don’t cover, protecting the structure, materials, and temporary works during those projects. Finally, business interruption coverage helps replace lost income and cover ongoing expenses if an event shuts down or limits operations for a period.

Relying only on property insurance leaves gaps, and treating liability or other coverages as optional creates exposure to lawsuits and cash-flow problems. Not having insurance at all would be reckless for anyone managing a building.