{"id":3190,"date":"2022-11-30T10:35:38","date_gmt":"2022-11-30T10:35:38","guid":{"rendered":"https:\/\/www.insurancebee.com\/blog\/?p=3190"},"modified":"2024-10-24T13:28:45","modified_gmt":"2024-10-24T13:28:45","slug":"what-property-management-insurance-do-you-need","status":"publish","type":"post","link":"https:\/\/www.insurancebee.com\/blog\/what-property-management-insurance-do-you-need","title":{"rendered":"What type of insurance does a property management company need?"},"content":{"rendered":"
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Claims and suits against property managers are on the rise. Staying out of court is getting harder and defense costs can run to $100,000 or more.<\/p>\n\n\n\n

But lawsuits don\u2019t just hurt financially, do they? They damage your reputation. And as a property manager, your reputation is your most priceless asset.<\/p>\n\n\n\n

You know you need protection. But with so many different kinds of property management insurance<\/a><\/strong> out there, it can be hard to figure out exactly what you need.<\/p>\n\n\n\n

It takes time, too. And that\u2019s better spent on your business.<\/p>\n\n\n\n

So here\u2019s a quick rundown of what you need, why you need it, and tips for getting the right insurance plan:<\/p>\n\n\n\n

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General liability insurance for property managers<\/strong><\/h2>\n\n\n\n

If you visit clients, or they visit you, you need general liability insurance<\/a><\/strong>. It\u2019s coverage for claims against your business if someone gets hurt, or their property is damaged, and it\u2019s your fault.<\/p>\n\n\n\n

Think about it. All it takes is spilling your coffee over a landlord\u2019s new laptop, or a prospective renter tripping over a computer cable in your office to find yourself facing a claim. Or worse, a lawsuit.<\/p>\n\n\n\n

General liability insurance can cover repairs and replacements, medical bills, legal costs and compensation.<\/p>\n\n\n\n

And if that\u2019s not enough to convince you it\u2019s coverage worth having, it\u2019s a reputation restorer, too.<\/p>\n\n\n\n

Say you\u2019re overheard making a not-so-nice remark about a renter. It gets back to them and they sue you. Your coverage can get you a defense attorney and pay your legal fees plus damages.<\/p>\n\n\n\n

It’s safe to say it’s an important part of your property management insurance.<\/p>\n\n\n\n

Professional liability insurance for property managers<\/strong><\/h2>\n\n\n\n

It\u2019s in the name. You need professional liability insurance<\/strong><\/a> because, as a property manager, you\u2019re a professional. You provide a service to landlords and renters, using your expertise.<\/p>\n\n\n\n

Unfortunately, that means if you make an error or omit something and it costs your client money, they could sue you. In fact, you can be sued even when you haven\u2019t made a mistake.<\/p>\n\n\n\n

What\u2019s confusing, is that professional liability insurance is also known as errors and omissions insurance \u2013 or E&O, for short. What matters, is they do the same thing.<\/p>\n\n\n\n

Whether you\u2019re at fault, or not, your coverage gets you an attorney and can pay your legal expenses, plus any damages you\u2019re liable for. And it can cover past errors too. You just need to make sure that your E&O policy was in place when the error happened.<\/p>\n\n\n\n

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Workers’ compensation insurance<\/strong><\/h2>\n\n\n\n

Employ anyone? Depending on what state you\u2019re in, you almost certainly need workers\u2019 compensation insurance<\/strong><\/a>. If you don\u2019t have it, you\u2019ll be fined.<\/p>\n\n\n\n

Different states have different rules. Some require you to have insurance as soon as you employ a single person. Others have different rules. If you\u2019re unsure, check your state\u2019s laws.<\/p>\n\n\n\n

So it\u2019s a must-have, but there\u2019s a good reason for it. The cost of workplace injuries to your staff could cripple your business. It\u2019s not just the loss of productivity. Without insurance, you\u2019d have to come up with the cash to cover medical and legal expenses, as well as replace any missed wages.<\/p>\n\n\n\n

Workers\u2019 comp insurance can pay for medical bills, lost wages, and legal costs. It can also protect you from a lawsuit \u2013 no matter whose fault an accident was.<\/p>\n\n\n\n

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Cyber liability insurance<\/strong><\/h2>\n\n\n\n

Cyber Risk insurance, data breach insurance, cyber liability insurance<\/strong><\/a>\u2026 they\u2019re all names for the same coverage. You should seriously think about getting it.<\/p>\n\n\n\n

Why? Because as a property manager, you electronically store confidential, personal data on owners and tenants. You use email and you probably have a website. That makes you a target for cybercriminals.<\/p>\n\n\n\n

And if you think your firm\u2019s too small to be at risk, think again.<\/p>\n\n\n\n

A whopping 85% of data breaches are at small businesses and 60% of these shut down within six months of the attack.<\/p>\n\n\n\n

Cyber liability insurance for property managers can cover:<\/p>\n\n\n\n