Protect your organization from risks and liabilities.
As a property manager, it is your job to take care of commercial and residential properties. Unfortunately, that responsibility doesn’t always go smoothly. When something goes wrong, you will be held responsible. Your insurance can help to protect you against any liabilities.
Running your property management business involves activities such as negotiating and enforcing leases, collecting rent, maintaining the property and ensuring the safety of tenants. Each of these tasks involves its own set of risks and liabilities. Errors happen and sometimes things go awry even when you perform your duties perfectly.
Insurance for Property Management Companies
Property management insurance is errors and omissions (E&O) insurance, an important form of coverage for your business. It helps to protect you if there are any claims of negligence of deficient services during the operation of your company.
Unfortunately, these types of claims are on the rise. Even when your business made no errors or omissions, sufficiently defending yourself can be a drain on your resources. Furthermore, this type of claim would not be covered by general liability because that type of policy does not cover errors.
Don’t risk your business and livelihood over a real or perceived error. Get the right insurance for property management company coverage and grow your business confidently.
What Does Property Management Insurance Cover?
E&O insurance covers you for lawsuits related to mistakes you or a team member may make during your normal business practices. Such claims may come from business owners, tenants and even prospective tenants. These are some examples of the types of claims that property management insurance could protect you against:
Failure to properly protect the property
Other claims of a failure to perform contractual obligations
Determining whether such errors have occurred can be challenging and requires significant legal proceedings. Even if you successfully defend yourself against the claims, the cost can be substantial. Having the right coverage will help to protect you and your business against such lawsuits.
This type of policy will not cover certain types of claims, particularly those related to willful negligence or criminal behavior. In other words, errors and omissions insurance only applies to unintentional mistakes, not malicious acts. Depending on the policy, it may also not cover bodily injury, property damage or punitive damages.
Why Property Management Insurance Is Important
Simply put, lawsuits happen in the property management business. In many cases, the alleged error or negligence may be in the eye of the beholder. Someone may perceive an error such as wrongful eviction even when you have done everything by the book. Defending your business can be costly even when you are in the right.
Find the Right Property Management Insurance for Your Needs
At HUB International, we can help you find the right property management insurance policy for your business’ needs. As an experienced property management insurance broker, we work hard to ensure that each of our clients gets the right coverage for them. Contact a HUB property management insurance broker today to learn more about your options.