Owning a rental property is an investment that comes with its share of risks. Just like a shield in battle, the right insurance coverage can act as a financial defense for your rental property business, minimizing the impact of losses and lawsuits.

Many rental property owners understand the importance of property and general liability coverages, but your coverage likely isn’t complete without optional add-on insurance coverages to guard against additional risks.

Here are several optional coverages your rental property business can benefit from securing.

5 Optional Insurance Coverages You Should Know

1. Workers’ Compensation Insurance
Workers’ compensation coverage is a must if you have employees, such as maintenance workers or office staff. It covers medical expenses and lost wages if an employee is injured or falls ill as a result of performing duties of their job. No matter how careful employees are, accidents happen, and this policy helps ensure you aren’t left owing the bill.

Millers Mutual’s workers’ compensation coverage also features proactive benefits, such as customizable tools and educational resources to help you and your employees minimize risk.

2. Employment Practices Liability Insurance
EPLI helps protect your rental property business against claims of discrimination, wrongful termination, harassment, and other employment-related issues. If you have employees or vendors, EPLI is an essential policy that helps cover legal costs associated with employment suits filed against your business. Even small misunderstandings can lead to costly legal battles, and EPLI can help you navigate the expenses.

Millers Mutual’s EPLI product also includes coverage for third-party claims, so your business is protected when discrimination or harassment charges are filed by customers or vendors, not just employees.

3. Data Response & Cyber Liability Insurance
In today’s digital age, it’s rare for landlords to not use some form of technology in the operation of their rental property business. Online applications, digital rental agreements, online payment portals, and emails can save time and money, but they also carry a risk that sensitive applicant and tenant information could be compromised by a cyberattack.

If this happens, data response and cyber liability insurance can offer valuable support to help ensure rapid response, legal compliance, and financial protection. It can help cover costs associated with a data breach, including notification and remediation for the affected parties, business interruption, legal fees, industry fines, and more.

4. Vacant Property Insurance
Whether due to tenant transitions or dwelling renovations, your rental property won’t always be occupied. Vacant properties, even temporarily vacant ones, have unique risks and may be more susceptible to vandalism, theft, and other damage. Standard property and business policies might not cover losses if the unit is unoccupied. With vacant property coverage, you’ll have more complete protection against the costs of repairs, liability suits, and more.

5. Commercial Umbrella Insurance
When it comes to liability claims, your standard policy’s limits might not be enough to cover every eventuality, especially if a severe injury or loss occurs at your property. A commercial umbrella policy helps shield your rental property business from catastrophic financial damage in these situations. It provides coverage beyond that of your standard policy if a liability claim’s costs exceed your primary policy’s limits. Considering how costly medical bills alone can be, it’s a wise investment for most rental property businesses. It’s like having a bigger, better backup shield for your business finances.

Protect Your Rental Property – Properly

Choosing the right insurance coverage is more than a business decision; it’s a commitment to the longevity and success of your rental property investment. These insurance coverages help guard against unexpected events that could otherwise derail your business. Don’t leave your future to chance.

Millers Mutual is a niche casualty and property insurance carrier that exclusively protects rental properties and their owners. We offer extensive coverage options, from Businessowners Policies to all the optional coverages listed above – plus services like renters insurance, tenant screening, and fire prevention products to further protect your rental property business.

To see what Millers can do for you, find a Millers agent.