Property Fund & Real Estate Investment Trusts

Business interruption

Can replace income and continuing costs, such as loan payments, when a covered event forces a property to stop operating.

Can include lost earnings, ongoing expenses, added expenses and longer recovery period

Contractor’s all risks (CAR)

Typically insures a construction project’s site, materials and equipment against damage, with third-party liability and delayed completion costs added.

Can include damage to property, liability to third parties, machinery and equipment and delayed projects

Delay in start-up (DSU)

Is designed to bridge construction and operating coverage by replacing projected revenue and added costs when a project opens late.

Can include anticipated profit loss, late project start-up and extra project costs

Fiduciary liability

May respond when someone accuses the people who run an employee pension or health plan of mismanaging it.

Can include fiduciary duty breaches, defense of claims and settlements and court awards

Real estate title

Generally protects an owner or lender if a defect in a property’s title, missed in the search, later threatens their rights.

Can include errors in public records, undisclosed liens, fraud and forged documents and disputed boundaries

Directors and officers (D&O) liability

Often covers claims against the officers of a property fund or REIT, such as shareholder suits alleging failure in their duties.

Can include individual liability (Side A), company reimbursement (Side B) and entity coverage (Side C)

Professional liability (E&O)

Can pay legal defense and settlements when clients claim error, omission or negligence by a fund manager or property advisor.

Can include professional error, cost of defense and settlements and court awards

Performance bond

Typically compensates the owner of a project if the contractor fails to deliver the contracted work on schedule or to specification.

Can include contractor failure, work below standard and late completion

Payment bond

Can help parties working on a funded project get paid if the principal contractor cannot meet its obligations.

Can include failure to pay, contractor failure and contested sums

Crime

Usually reimburses a property business for losses from theft, forgery, fraud or extortion by employees or outside criminals.

Can include dishonest employees, forged or altered documents, burglary and robbery and computer fraud

These guides describe types of insurance in general. The right coverage depends on your operations and the terms of the policy issued. Pasaca’s featured lines are cyber insurance, directors and officers (D&O) liability insurance, product liability insurance and aviation insurance.