Property management insurance

Property management liability insurance

Being a property manager is a balancing act. You walk the wire, juggling landlord and tenant, leases and lawncare, codes, and cash flow.

You’re expected to be a fortune-teller, too - predicting rental trends, budgeting future property needs and spotting good renters from bad.

But all it takes is one misstep and you could teeter and fall. And the business you’ve been building for years could come crashing down with you.

• Why does a property manager need professional liability insurance?

  What if a client claims you’ve made a mistake which cost them and to recoup the money, sues you for professional negligence? You could find yourself in a different kind of circus – court. And that won’t just hurt financially, it might be a wipe-out.

  Also known as errors and omissions insurance - E&O, for short - professional liability insurance acts as your safety net. If a claim’s made against you – even if it’s groundless – it can cover legal fees and any damages you’re liable for.

  It means you can walk that wire with your eyes fixed firmly on the horizon. Growing your business, without worrying about a wobble. Or the clowns.

• What does property management liability insurance cover?

  • Errors and omissions – whether you actually made them, or not
  • Claims made against you – and damages, if you’re liable
  • Your defense costs – including hiring an attorney, if you need one
  • Claims over work you’ve done in the past
  • Claims made for work worldwide – as long as they’re filed in the United States, a U.S. territory or Canada

• What other kinds of coverage do property managers need?

  If you visit clients, or they visit your premises, you’ll want general liability insurance. It can cover you for claims made against your business if someone’s hurt, or their property’s damaged and it’s your fault.

  You might want to add business personal property insurance to your package. It protects your cell and other mobile devices when you’re out and about. And also covers anything moveable in your office. From your printers to your potted plants.

  Got any staff? Even if you employ one person, most states require you to have workers’ compensation insurance. It’s worth having anyway. Workplace injuries can cripple a business. Workers’ comp can pay medical bills and legal fees if you’re sued.

  If you store tenants’ and owners’ confidential data electronically, use email and run a website, you should seriously think about getting cyber liability insurance. Because it’s not the cyber attack that will destroy your business and reputation, it’s the recovery cost.

  Cyber insurance can take care of these expenses so you can get back to business, confident you still have one.

  There’s more on what kinds of insurance property managers need on our blog. But because every property management company is different, it means your insurance requirements are too.

  That’s no problem.

  We can customize your coverage to suit your exact needs. And it’ll only take a few minutes.