Condo Owners Need More Coverage Than the Master Policy

Although most new condo owners are added to the property’s master policy upon purchase of the unit, the claim that this policy is all owners need is misleading. You may have been told that your unit’s coverage under the master policy prevents you from having to purchase separate coverage, but the policy is only meant to protect the property, not your personal possessions. If your condo is only covered under the master policy, now is a good time to purchase additional coverage that meets your needs. 

couple researching condo insurance as they move into a new condo

What Is a Master Policy? 

A master policy is the most basic type of insurance used by condo owners. It typically covers damage to the building itself, as well as common areas and liability for the condominium association. However, unlike other policies, your master policy does not cover your belongings or personal liability. The master policy provides the necessary protection for your condominium association. But only being covered under the master policy is not sufficient to protect yourself. 

How Should I Cover My Condo?

Every condo owner’s coverage should be comprised of both the master policy and individual condo insurance. Condo insurance is similar to regular homeowners insurance, but it is designed to meet the unique needs of shared property ownership. It covers owners’ belongings and personal liability, as well as additional coverage for the building itself. Upgraded features may also be covered only by condo insurance, as many master policies only cover standard features.    

What Happens If a Claim Is Made?

If a claim is made for something that happens within your unit, you will generally be defended by your private insurance company, not the master policy. Your insurance company will cover the necessary funds, minus the deductible. If you are only covered by the master policy, you will likely be responsible for the claim.  

Your master policy should work together with private condo insurance to provide the best possible protection, rather than being considered the only insurance you need. In order to adequately protect yourself and your belongings, select a condo insurance policy that effectively fills in the gaps of your master policy.  At Vargas & Vargas Insurance, we’re here to help you find the right coverage.

Do I Need Professional Liability or E&O Insurance in Massachusetts?

In a nutshell, Errors and Omissions (E&O) insurance is a professional liability insurance policy created to protect professionals, employers, and employees from claims of inadequate work or negligence. Here in Massachusetts, it’s a useful policy for professionals who work with contracts, finances, investments, and other risks. 

group of professionals conversing and looking at a file

In other words, if your organization could get sued for giving bad advice, or even making an honest mistake on paperwork, E&O insurance is for you. Choosing the right coverage can be complicated, so Vargas & Vargas is here to help.

Businesses That Should Have Professional Liability Insurance

Examples of organizations that should always have professional liability or errors and omissions insurance are:

  • Realtors and real estate agents
  • Insurance agents
  • Investment specialists and stockbrokers
  • Retirement planners
  • Funeral homes and funeral directors
  • CPAs and contracted bookkeepers
  • Homebuilders
  • Some businesses in the manufacturing sector
  • Medical professionals

How E&O Insurance Works

Let’s imagine you own a small retirement planning firm in Massachusetts. You have two fully licensed employees. During the flu season, you and one employee are both out sick for a whole week, leaving a single employee to run the office. She’s an excellent employee. You trust her, and so do your clients.

However, the workload is too much, and your good employee makes a few honest mistakes. She provides inaccurate projections to one family and accidentally gives them the wrong answers for what their whole life insurance policies will be worth in a year. Of course, she does this all via email, and your clients have proof of her statements.

All is well until next year when those customers come back to complain they were given the wrong information! They were expecting to have much better results from their investments. They get together and hire a lawyer to sue your business.

This is when your errors and omissions coverage comes into play. It will cover your court costs (up to the limits on the policy). If you need to hire a lawyer and end up paying the difference to these clients, E&O has you covered.

Does My Business Have Enough E&O Coverage?

You’ve worked hard, and your business is growing. Congratulations! It’s probably time to review all of your commercial policies, including your Business Owners Policy (BOP), commercial liability, and errors & omissions coverage. Get in touch with us today to speak with a Massachusetts licensed insurance agent. We’d love to review your policies and get you a free quote.