Business Insurance for Property Managers

Property managers typically must carry errors and omissions insurance to comply with state laws and contracts. Here are a few examples of entities that may require coverage:

• Your state. For example, Rhode Island requires E&O insurance for all active real estate licensees, including real estate agents and property managers, though it's not required in California, Florida, or Texas.
• The property owner. Property managers frequently need E&O coverage in order to work for their clients. The property owner often specifies the amount of coverage required.
• Local boards and professional organizations. These often mandate or recommend E&O insurance for their members. For instance, the National Association of Realtors (NAR) strongly recommends insurance and offers access to several options.

Even when it's not required, errors and omissions insurance provides crucial protection against lawsuits from injured tenants. You may need to add a tenant discrimination insurance endorsement to help pay for legal defense costs related to discrimination claims.

Property managers who own buildings often invest in additional policies, including:

• Lessor’s risk only (LRO) insurance: This policy covers legal costs if a tenant sues over an incident that happened in a space rented out by you, such as an apartment or office.
• Building insurance: If a fire, storm, or vandal damages your building, this coverage will help pay for repairs.

You'll want to consider both policies for full protection against liability claims and property damage.

Property managers often buy the following policies to protect against other losses and fulfill insurance requirements:

• Business interruption insurance covers lost income and financial losses tied to a covered property claim, such as damage from a fire or storm. It's also called business income insurance.
• Commercial umbrella insurance provides protection when your general liability, commercial auto, or employer's liability insurance policy reaches its limit.
• Commercial property insurance pays for repairs or replacement when a fire, storm, vandalism, or other incident damages or destroys your business property or its contents.
• Commercial crime insurance comes in several forms that protect against employee theft, burglary, and fraud. It's important if you handle rent payments.

Small business owners can save money when shopping for insurance in several ways:

• Shop around. By filling out TechInsurance's easy online application, you can compare quotes from top-rated insurance companies to find a policy that fits your budget and insurance needs.
• Bundle policies. When you buy policies from the same provider, you can often combine them in a cost-saving package. The most common example is a business owner's policy, which includes general liability coverage and commercial property insurance.
• Pay the full annual premium. It's often cheaper to pay the full annual amount rather than smaller monthly installments on your premium.
• Choose lower limits or a higher deductible. Though you'll want enough coverage for a potential claim, you can opt for lower policy limits or a higher deductible as an easy way to reduce your premium.

Our licensed agents can help find you the best insurance for property managers without breaking the bank, giving you financial protection and peace of mind.