6 Potential Risks Covered by Property Manager Insurance
If you manage residential or commercial properties, you face a diverse set of risks and potential losses. From liability issues to damage protection, we’ll help you navigate the world of property manager insurance and design coverage that’s a perfect fit. Here are 6 potential risks covered by property manager insurance:
1. Errors and Omissions Insurance (E&O)
Risk Factor
Property management firms have many exposures that can lead to a lawsuit. Dealing with boards of directors, owners, residents, employees, vendors, and regulatory authorities can and often does lead to lawsuits.
Solution
Errors and omissions liability insurance protects property management firms if a client alleges that you were professional negligent or failed to perform professional duties.
2. Crime and Fidelity Coverage
Risk Factor
As a property management firm, you have access to your clients’ money. Illegal activity such as forgery or theft can occur.
Solution
Crime and fidelity coverage is designed to provide coverage for theft of not only money and personal property owned by the firm, but money that the firm has in their custody of their clients.
3. General Liability
Risk Factor
Property management firms can be sued for injuries or property damage at their office and sometimes at the properties they manage.
Solution
General liability insurance is an absolute necessity for any property management firm. It provides coverage for legal fees and judgements when the firm is named in a covered lawsuit for bodily injury, property damage, associated medical costs, and more.
4. Cyber Liability Insurance
Risk Factor
Property management firms have exposures including the need for protection of privacy, data, and financial information for their clients. Breach of data can result in costly fees and lawsuits for the association if held liable.
Solution
Cyber liability coverage covers fees and lawsuits resulting from the breach of personal data in the event your firm is liable.
5. Hired and Non-Owned Auto Liability Insurance
Risk Factor
Property managers must drive to the sites they manage regularly. Accidents can and do happen. If an employee were to get into an auto accident while working, the management firm could be named in a suit by the injured party.
Solution
If any automobiles are owned by the property management firm, a commercial auto insurance policy should be obtained. In addition, hired and non-owned auto liability should be maintained in any case to provide coverage in the event an employee gets into an accident while using their own car.
6. Commercial Property Insurance
Risk Factor
Property management firms may face serious financial consequences from property loss by fire, wind, or other causes.
Solution
A business owners policy (BOP) or package policy providing commercial property insurance will provide coverage for damage to a building you own, along with coverage for personal property and lost income due to a covered cause of loss.
Get Coverage Today!
The Satanoff Agency, located in Wayne, PA, is an independent insurance agency based in 41 states across the United States, working to supply our customers with quality assistance and insurance. Our independent agents offer their services to help you as the customer get the unique coverage you need.
To request a quote for property manager insurance, click here and we will have one of our agents contact you.
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