Property managers handle a vast spectrum of responsibilities. It is important while doing your job, you are informed of insurance policies that can provide you coverage should any accidents or mishaps occur. Lawsuits in this industry are quite common, so having the right protection can cover any risk you may face. Any property manager who: rents or leases properties on behalf of someone or group, manages a rental property, or operate a business of property managers, make sure you are aware of these insurance policies:
- Property insurance
- Liability Insurance
- Workers Compensation and Health Coverage
- General Liability Insurance
- Errors and Omissions Insurance
- Tenant Discrimination Insurance
While it is important, depending on the size and scope of your property management business, to have sufficient coverage of all of most of these insurance policies, ManageCasa will deep dive into the three lesser known insurance policies.
General Liability Insurance: This is an insurance policy intended for everyday business practices, independent of industry. But applies equally to property managers. It protects property managers from third-party claims for bodily injuries, medical costs, and damage to property. Some examples of when this would applicable:
- Bodily injury: If a client accidentally trips on your icy steps, resulting in an injury. Having General Liability Insurance will cover these types of claims and related medical costs.
- Property damage: You knock over a client’s computer, resulting in a broken computer. Depending on your coverage, your insurance policy may cover this claim.
Errors and Omissions (E&O) Insurance: This is also known as “Professional Liability Insurance”, which is designed to protect property managers against wrongful evictions, invasion of privacy, or hiring misjudgments. If you are a property manager who regularly provides professional services and advice to clients, having this insurance can protect tenants and landlords from a financial loss directly related to a mistake you are at the root of.
Tenant Discrimination Insurance: This policy protects property managers and owners in the event of a lawsuit based on grounds for discrimination, harassment, or wrongful evictions. While property managers can avoid tenant discrimination lawsuits by abiding by fair housing acts, there are common instances that good-intentions don’t always end fairly, which pushes many property managers to consider purchasing Tenant Discrimination Insurance. This can cover legal costs and damages from claims of race, color, age, sex, religion, disability etc. discrimination and harassment (sexual, non-sexual, assault/battery), as well as eviction claims.
Average Costs: General Liability Insurance can run around $600 and $2000 for an individual or very small property management business. The average cost of Professional Liability Insurance falls between $700 and $1000.