Professional Liability Insurance for Property Managers
Property Management Professional Liability Insurance—also known as Property Manager Errors & Omissions Insurance or Property Management E&O—protects all types of property management professionals if a client alleges that you were professionally negligent or failed to perform duties as promised in your contract.
Some of your clients may require that you and your subcontractors carry Property Manager Errors & Omissions insurance. The right kind of E&O policy can protect both your property management firm and subcontractors from claims of perceived error or omission, even if the problem occurs months after the initial consultation.
What Does Property Management Insurance Cover?
Property Management Insurance covers legal defense costs – no matter how baseless the allegations. It will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy.
Note that because Property Management insurance is an errors and omissions coverage, it is not included in a Commercial General Liability policy. Commercial General Liability does not provide coverage for errors, contract performance disputes, or any other liability issues. Property management consultants and companies who have General Liability without Professional Liability (Errors & Omissions) coverage are taking a serious risk.
Additional Coverages For Property Managers
Your Property Management Liability insurance policy can also be customized to include:
- A business owners package that includes general liability insurance and property insurance
- Business auto coverage
- Options including coverage of personal injury and property damage claims
- Defense costs outside the limits of liability
- Deductibles beginning at $0
Why Do I Need Property Management Liability Insurance?
The exposures facing Property Management companies are changing rapidly. Recent changes in the professional liability exposures of property managers include:
- Commercial property securitization and more sophisticated property investors
- Ever-increasing technical knowledge demands needed to manage complex building systems
- Expanding tenant needs and expectations
- Increasing number of non-traditional property management duties
The changing property management climate has resulted in much closer scrutiny of industry practices and an expansion in the number of legal challenges. A Property Management Liability insurance policy is an important tool to address the potentially catastrophic impact of litigation. Brunswick Companies is here to help you find the coverage you need to succeed.
