Property management insurance is a protection for property management professionals against allegations from clients. More specifically, this insurance for property managers protects the managers from any claims made by clients like failing to follow the contract or displaying professional negligence. It is a good idea for property managers to have this type of insurance because there are dozens of ways that a property manager can have a lawsuit filed against them. A property usually has a lawyer to deal with these problems but the property management insurance pays for all the legal fees and court fees that com with any lawsuit.
In General, All Commercial Property Managers Should Have Property Management Insurance
If any of these sound like the professional services you are providing, you should seriously consider having property management insurance.
- Determine the rent price.
- Prepare vacant units.
- Advertise rental vacancies.
- Screen and approve tenants.
- Prepare and enforce a lease agreement.
- Handle tenant complaints and issues.
- Collect and adjust the rent.
- Carry out property maintenance and repairs.
What Types Of Commercial Property Managers Are There?
Like any service industry that provides a specialized service, property managers should carry professional liability insurance.
- Errors And Omissions (E&O) Insurance – This kind of insurance is designed to protect property managers from lawsuits regarding mistakes made in professional services. This is a kind of professional liability insurance. The policy would cover errors in the form of Service-Omissions-Negligence or Inaccurate Advice. Without this type of insurance, you are open to many financial risks in terms of allegations from clients. Your out of pocket expenses could cost thousands of dollars.
- General Liability Insurance – While Errors and Omissions insurance covers specialized services offered by a property manager, you will also need General LiabilityiInsurance. General Liability insurance is intended for the day to day business practices of any company, regardless of the industry. You should have both Errors and Omissions coverage and General Liability insurance set in place for your property management business to cover the day to day business and specialized services provided. More specifically, business liability insurance covers bodily injury, property damage, copyright infringement, and reputational damage.
- Tenant Discrimination Insurance – Tenant discrimination can be a major concern for property managers. Protection in this area is not always covered by general liability policies, so make sure to ask especially about adding tenant discrimination insurance. Adding tenant discrimination insurance can cover property managers when current, prospective or former tenants allege wrongful discrimination. To be exact, this coverage protects property managers from allegations regarding sex, race, religion, age, sexual orientation, and ethnicity. This could cover any claim for any sort of unfair action.
- Do You Have Employees? – If so, you will need worker’s compensation insurance. In most states this insurance is mandatory. A few things that are covered by worker’s compensation insurance include, employee injuries, missed wages, death expenses, and vocational rehabilitation.
The Most Important Steps To Take When Choosing Your Property Manager Insurance
- The types of properties you manage
- Where your properties are located
- If you have any employees
Putting everything together, a complete insurance policy for your business can run from $50 to 100.00 per month. That can be a small price to pay compared to the protection that could come from the coverage.
- Flexible payment options
- Tailored insurance
- Claims responsiveness
- Passion for service
What Does Your Business Need Most?
Which insurance is your priority? For example, if you are a sole proprietor, you do not need workers compensation. When considering your needs, it will be useful to consider future needs and how your company could change. What types of claims can you imagine at your property? Wrongful or negligent evictions, discrimination claims or other claims of failure to perform professional duties according to your contract.
Start searching today to fully insure your most important asset – your property.
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About Gartman Insurance
About Gartman InsuranceWe are your trusted, family-owned independent insurance agency. Your family, your business, and your possessions are all important to you, but you may not know how to best protect them. We have the experience and local knowledge to navigate the unique risks you face, serving as your insurance advisor. Since 1999, Gartman Insurance Agency has proudly served our customers in Kentucky, Ohio, Indiana, Tennesee, and Alabama, helping them to find the right insurance coverage to fit their needs. Our customers are our priority, and we are always finding ways to better serve them, whether that’s helping them find a better policy or giving them the power of choice when it comes to their insurance coverage.
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