Property Preservation Insurance

Property preservation insurance

Property preservation insurance is simply a term used for any type of policy a property preservationist obtains.

Property preservationists play an important role in society. They care for the interiors and exteriors of foreclosed properties, whether they’re vacant or occupied. Day-to-day tasks may include repairs, property inspections, claim management, and maintenance.

All of these activities entail a certain level of inherent risk. This is why many professionals within this field purchase a property preservation insurance policy.

But what does it cover? Let’s review.

What is property preservation insurance?

In most cases, property preservation insurance is simply a term used for any type of policy a property preservationist obtains. That said, there are certain types of insurance that are commonly recommended for property preservationists. They can include:

  • General liability insurance
  • Commercial auto insurance
  • Contractor’s tools and equipment insurance
  • Workers’ compensation insurance

Whether it’s stolen tools, or visitors injuring themselves during a walkthrough, there are a variety of exposures involved with maintaining and restoring foreclosed properties. Property preservation insurance can help you cover the expenses related to lost or damaged property, medical bills, lawsuits, employee injuries, and more.

To give you a better understanding of what is and isn’t covered, let’s review each type of coverage typically included.

General liability

General liability was created to safeguard your small business from common, daily risks related to interacting with third parties (clients, subcontractors, passer-bys, etc.). Coverages include bodily injury, property damage, and personal and advertising injury. 

Regardless of industry, practically every business owner would benefit from the protection of a general liability insurance policy. But it’s especially important for property preservationists. 

What does general liability insurance cover? 

A general liability insurance policy is designed to help protect you from costs arising from situations such as:

Bodily injury – Properties are filled with potential hazards. Should an inspector get injured during a walkthrough of the property, you could be held liable for their medical bills.

Third-party property damage – A critical part of the job often involves renovating the interior. Should you damage the home or a piece of expensive furniture in your remodel, the property owner could file a third-party property damage claim, holding you liable.

Defense – Even if you take proper precautions, an accident is always possible when third parties visit a site. Should that occur and a lawsuit is filed, you will need a defense (regardless of liability).

Personal and advertising injury – Part of your job requires that you advertise your property preservation service to the community. Should one of your competitors claim that your advertisement was false and damaged their reputation, you could be held liable for defamation. 

In a litigious world, just one lawsuit could harm your reputation and bottom line. And in most cases, banks and realtors will require you to have it before they hire you.

Workers’ compensation

Workers’ compensation insurance protects the property preservation business should its employee suffer a workplace injury or work-related illness. And if you have at least one full-time employee, it’s likely that you’re legally required to have workers’ compensation.

What does workers’ compensation cover? For your employees, it can cover:

  • Medical bills and treatment
  • Rehab
  • Disability
  • Lost wages
  • Funeral expenses

Preserving properties is often a strenuous job, filled with inherent risks. Workers’ compensation assures your employees that you have their health and safety in mind.

Commercial auto insurance

Does your business own or lease vehicles that it uses for commercial reasons? If you use a vehicle for any of the following reasons, then you’re probably legally mandated to have commercial auto coverage:

  • Having a vehicle that’s titled to the business
  • Transporting clients or clients’ property for a fee

Every state in the country requires a business to have protection from vehicle-related liability. While each state has different requirements, they all stipulate minimum coverage limits related to bodily injury liability and property damage liability.

Do you use your personal vehicle for work purposes? You need to verify whether your personal automobile insurance policy provides coverage for its use in business. If not, you will have to purchase commercial auto coverage.

Contractors tools and equipment insurance

Your tools and equipment allow you to do your job. But what happens if they get damaged, stolen, or lost?

This is why many property preservation insurance policies often include inland marine coverage, known at Thimble as Business Equipment Protection. With an inland marine policy, tools and equipment can be protected from theft, vandalism, and most other accidental loss or damage (not including wear-and-tear).

What qualifies as tools or equipment? Some examples include the following:

  • Hand tools – Saws, wrenches, hammers
  • Heavy equipment and machinery – Excavators, backhoes, bulldozers
  • High-end power tools – Drills, nail guns, jigsaws
  • Gear – Protective gear, uniforms, gloves

A property preservation contractor’s tools and equipment policy can help cover the value of the lost or damaged equipment. However, make sure you understand what equipment is specifically covered under the policy you purchase, any extensions or endorsements you may need for your particular business, and any loss limitations.

Liability insurance: Protecting you from risk

Even if you feel like you don’t need all of the types of insurance coverage discussed above, it’s smart to at least have general liability coverage. With your line of work, it’s vital that you protect yourself from inherent liability risks.

At Thimble, we’ve revolutionized business insurance, making it more affordable, flexible, and accessible. Our policies go by the hour, day, or month so that you’re only spending when you need coverage and saving when you don’t.

It’s insurance that works when you do.

Getting covered via Thimble takes less than 60 seconds. Simply download the Thimble mobile app or click “Get a Quote,” enter a few brief details about your business, we’ll generate a quote, and you can purchase it right then and there. Once completed, a Certificate of Insurance (COI) will be waiting in your email’s inbox.

Seriously, protecting your business is that easy.

The content on this page has been verified by
Terri Hitchcock, JD
Chief Insurance Officer, Thimble
Terri has 38 years of industry experience and knows a thing or two about insurance, so she reviewed and approved everything on this page.

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