What Kind Of Insurance Does a Property Management Company Need

The role of property management company involves overseeing and upkeeping properties on behalf of their clients.

Although these companies possess the capacity to handle various tasks, they remain susceptible to the inherent risks tied to property management.

Property Management Company
Insurance for Property management company: Photo courtesy (Forbes)

Therefore, it becomes crucial for these entities to secure insurance coverage, ensuring protection for both themselves and their clients against unexpected situations.

General Liability Insurance

General liability insurance is one of the most common types of insurance that property management companies need.

This type of insurance provides coverage for bodily injury, property damage, and personal injury claims that may arise from the company’s operations.

Property Insurance
Property insurance: Photo courtesy Forbes

For example, if a tenant slips and falls on a wet floor in one of the properties managed by the company, general liability insurance can provide coverage for any resulting medical expenses and legal fees.

Professional Liability Insurance

Professional liability insurance, or errors and omissions insurance, covers claims due to professional mistakes. Crucial for property management firms, it safeguards against financial loss caused by errors in property management. If mishandling leads to damages, this insurance covers legal expenses and awarded damages.

Property Insurance

Property insurance covers damages to properties owned or managed by property firms.

It shields against natural disasters, theft, vandalism, and more.

Also read: Does title insurance cover property line disputes? 

Vital for property management companies to secure coverage for property value and improvements.

Workers’ Compensation Insurance

Property firms with staff need workers’ comp insurance, covering medical expenses, lost wages, and related costs from work-related injuries.

It safeguards both employees and companies from lawsuits due to injuries.

Property Insurance
Property management insurance: Photo courtesy (Forbes)

Umbrella Insurance

Umbrella insurance offers added liability coverage beyond existing policies.

Property firms might require it to safeguard against major lawsuits surpassing policy limits, ensuring extra security and reassurance for both companies and clients.

Conclusion

Property firms tackle diverse risks daily. Insurance is vital to shield both themselves and clients.

Essential types: general liability, professional liability, property, workers’ comp, and umbrella insurance.

Expert agents ensure proper coverage for lasting protection.

Leave a Comment