1. The Risk Adverse Property Management Firm Understanding the risks to your business and methods to manage those risks.

2. About Cary Smith, CIC- President Treaty Oak Insurance Partners Based In San Antonio Former Insurance Company Employee Hartford, CIGNA, SAFECO Exclusively work with NARPM members

3. A Few Observations As the frequency of risk increases, premiums increase. As the severity of risk increases, premium increase. As the frequency and/or severity of risk increases the number of available insurance companies interested in providing product decreases. Underwriters do not like insuring businesses that lack processes, controls, and management oversight.

4. Methods to identify risk For the most part, these methods consist of the following elements performed in this order. Identify Risks to Your Business Characterize Likelihood and Consequences of Threats Prioritize Identified Risks- Quantify Identify Methods to Reduce Risks Assign a number 1-5 Cost of Risk * Likelihood * Severity = Risk Level

5. Methods to manage risk Once risks have been identified and assessed, we manage the risks using four techniques: Avoidance Reduction Sharing or Transfer Retention

6. Insurance as a Risk Management Tool- Transfer Transfer risk in exchange for a premium. Deductible is the risk you accept. “Self Insure” is 100% acceptance of risk. You can reduce reliance on insurance through sound business practices and proper controls. You can reduce premiums as well!

7. Risks To Your Business In the eyes of an insurance company, you are a general contractor you face risk from third party liability. You also face risks from your business activities. Employment Auto Professional Fiduciary

8. Threat Assessment for Property Managers Property Management Firm Property Management Firm Employees Practices Regulation Education Employees Practices Regulation Education Contractors Owners Tenants

9. Threat Assessment for Physician Medical Office Medical Office Employees Practices Regulation Education Employees Practices Regulation Education Customers & Professional Liability Customers & Professional Liability

10. Self Diagnostic Owners Do you use an association approved management contract? Do you enforce the contract’s requirements for insurance? Do you conduct an annual audit to ensure compliance? Do you monitor and respond when the owner’s policy cancels/changes?

11. Self Diagnostic Contractors Do you require all contractors to have insurance? Do you receive evidence of insurance from your contractors prior to payment? Do you require contractors to list you as an additional insured? Do you require a waiver of subrogation in your favor? Is the contractor accredited/licensed? Are they members of their trade association?

12. Your business Do you background check all employees prior to hiring? Do you use an employee handbook that details the rules? Do you conduct performance management reviews? Do you have controls in place for AR, AP? Are your people trained on enforcing contract requirements? Do you have a procedure for employees using their vehicles while on business? Self Diagnostic

13. Tenants Do you background check all prospective tenants? Do you have a signed lease agreement? Do you require tenant’s insurance? Self Diagnostic

14. Let’s Talk

15. Contact