Immobilier

Certain risks faced by those operating in the real estate sector are, to varying degrees, ever-present all over the world: These include variances in value tied to unpredictable macroeconomic conditions, natural disasters, human-caused catastrophes, and sudden or gradual property damage.

Others, like sociopolitical unrest, terrorism, and economic instability, are more common in certain markets than others, including various countries in the Asia, Pacific, Middle East, and South America regions.

Some areas of market risk pertain to precise verticals of real estate, rather than regions. For example, the risks of entering the commercial office space leasing market given burgeoning work-from-home trends differ from the risks of third-party logistics space, where demand is currently quite large. Investors should be discerning in their consideration of risk.

For the properties you own or intend to purchase, you'll want protection that goes beyond the basic standards (e.g., provisions for fires, hailstorms, tornadoes, wind damage, vandalism, and theft of non-cash business assets) and accounts for extraordinary circumstances:

• Extreme weather events (e.g., flooding, earthquakes, hurricanes, and landslides/mudflow)
• Cash theft
• Loss of rental income
• Terrorism
• Financial crime
• Political risk

Along similar lines, a general liability policy, broad as it can be, may not be enough to fully protect your property interests. Excess liability provisions you should consider include:

• Directors and officers
  
• Errors and omissions
• Environmental damage
• Injury (to you and your employees)