Management Liability for Not-for-Profit Organisations
Australia has about 60,000 registered not-for-profit organisations, according to the Australian Charities and Not-for-Profits Commission (ACNC).
Leaving your commercial property unattended during the upcoming summer holidays poses many risks. But these can be managed with some forethought.
The responsibilities are a group effort, though. They’re shared between owners, tenants and their representatives, those parties involved in managing and occupying such a property.
Depending on your building’s type, layout, use, and whether you occupy or lease out the premises, there are issues to consider. These include safety, maintenance and usage compliance. Property owners are responsible for maintaining:
The property owner is liable if tenants fall short of agreements to maintain particular elements of essential services.
So when a commercial property is unattended for a prolonged period, the risks remain of public liability involving safety and damage. They could lead to tens of thousands of dollars in damages, penalties from regulatory authorities and liability claims from third parties injured or affected.
Poor security or monitoring of unoccupied buildings could lead to:
Indirectly, that could mean financial and reputational damage for the property owner and tenant.
A leading insurer says while a business is 10% less likely to claim on insurance during a closure period, the average claim for unoccupied properties is 350% higher than one that’s occupied.
Therefore, always ensure you review your security arrangements before taking a break. Identify and attend to spots where trespassers may gain entry during the closure. Signage like ‘no trespassers’ or ‘CCTV surveillance’ may help thwart temptation. As well, test your security alarms, remove valuables from the premises or store out of sight and check windows and doors are locked shut. Give vegetation a trim and ensure you’re up to date on vermin treatments.
It may also be prudent to carry out these practices:
So, once you’ve locked up and left, there’s still more you can do to protect your commercial premises. For example, hiring a professional security service to regularly patrol the premises helps resolve any issues promptly. You can opt for:
There’s an important difference between premises closed for holidays as opposed to vacant or unoccupied premises. The insurance premium for vacant premises tends to be three to four times higher than for tenanted buildings.
We can advise you on managing your commercial property risks. We can customise a policy package to cover your business and property when you’re open or closed for business. Your options include coverage for property, theft and money, public liability, glass as well as machinery. We can help clarify excess amount, sub-limits, inclusions and exclusions. That way, you’ll really be able to enjoy your extended Christmas-New Year holidays, knowing your risks will be covered on several fronts.
Article supplied by OneAffiniti
Photo by Alex Kotliarskyi on Unsplash