Property Management Insurance

The right coverage for a property management company can help provide reimbursement for losses due to lawsuits and more.

Christine Lacagnina Written by Christine Lacagnina
Christine Lacagnina
Written by Christine Lacagnina

Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.

paul martin Reviewed by Paul Martin
paul martin
Reviewed by Paul Martin

Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.

Updated
Property manager and customer looking at apartments. Find Property Manager Insurance.


As property managers of both residential and commercial buildings become more susceptible to lawsuits and other types of risks, the need for business insurance coverage only increases with time. To combat the growing chances of a disaster in your unique industry, having the right kind of property manager's insurance is essential. Fortunately, getting coverage can be simple.

An independent insurance agent can help you find the right kind of property management insurance. They'll set you up with a policy that includes each type of coverage you need. But for starters, here's a closer look at property manager insurance and why it's necessary.

The Most Common Property Management Liability Risks

Property managers are ultimately responsible for finding and keeping tenants on someone else's property. To be successful, they must do the following:

  • Negotiate, sign, and enforce leases
  • Collect rents
  • Make repairs
  • Conduct routine maintenance
  • Ensure the safety of tenants and guests

Each one of these endeavors comes with its own set of risks. Luckily, property and liability insurance is designed to protect your investments and business. 

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What Does Property Manager Insurance Cover?

The biggest risks to be concerned about in property management are related to property maintenance and contract negligence. In most cases, property managers need to carry commercial property insurance and a few other kinds of business liability insurance. Insurance for property managers often includes the following:

  • Commercial property insurance: Protects a property manager’s assets after a physical loss due to smoke, fire, wind, hailstorm, vandalism, and other covered events. Property managers are responsible for keeping insurance coverage on the buildings they manage, but it depends on their responsibilities as outlined in the contract with the property owner.
  • Commercial general liability: Provides reimbursement if you get sued by a third party, such as a tenant, for claims of bodily injury or personal property damage. 
  • Professional liability/Errors and omissions (E&O) insurance: In this case, also known as property management liability insurance, this coverage provides reimbursements for lawsuit costs that result from third-party claims of providing negligent or incomplete professional services.

An independent insurance agent can help you get set up with the right kind of property management insurance coverage.

Why Do Property Managers Need Liability Coverage?

One necessary type of coverage for a property manager is professional liability insurance, or errors and omissions coverage. When it comes to property management, there are a few unique exposures that can be protected by professional liability insurance, such as:

  • The failure to purchase enough property insurance, resulting in a loss for the property owner
  • Wrongful or negligent evictions
  • Discrimination claims (e.g., tenant claims discrimination against them by you)
  • Other claims of failure to perform professional duties according to your contract

Professional liability insurance covers your legal defense costs, settlements or judgments you're required to pay, court costs, and attorney fees. Commercial general liability insurance will not cover expenses related to professional liability lawsuits, making this coverage essential for property managers.

However, E&O policies have specific coverage exclusions, depending on your profession. Typical exclusions could include:

  • Criminal, fraudulent, intentional, or malicious acts
  • Bodily injury and property damage 
  • Workers' compensation claims
  • Punitive damages

Having the right kind of professional liability insurance on hand is one of the keys to running a successful property management company.

Other Property Management Coverages to Consider

Insurance for a property management company must include many different types of coverage. You might want to consider adding these coverages to your property manager insurance policy:

  • Commercial auto insurance: This covers accidents and other incidents related to company vehicles.
  • Workers' compensation insurance: This is required for most businesses that have employees and protects you and your employees from the costs of work-related injuries, illnesses, and death.
  • Employee dishonesty coverage: A form of crime insurance, this protects the business owner from a financial loss due to employee theft. 
  • Equipment breakdown insurance: Often referred to as boiler and machinery coverage, this covers costs associated with the accidental breakdown of machinery or equipment and resulting property damage or loss.

Work together with an independent insurance agent to ensure your property manager's insurance policy is truly complete. 

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Our independent agents shop around to find you the best coverage.

Why Work with an Independent Insurance Agent?

Independent insurance agents excel at matching the most appropriate policy to the business or professional in need. Shopping around for insurance policies can be time-consuming, and an independent insurance agent's role is to simplify the process.

These agents help ensure you get the best blend of coverage and cost and the property manager insurance policy that meets your unique needs. They shop and compare insurance quotes for you, only presenting the best results.

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