Property Management Insurance: A Beginner’s Guide

property management insurance

From injuries to errors, your property management company could be liable for an entire list of potential problems. Here’s how to make sure you’re covered by property management insurance so that you can have peace of mind and manage your business with confidence. 

Personal Injury Insurance

Personal injury insurance is a basic necessity for property management companies. This insurance protects your company in case a tenant is injured on an owner’s property. Keeping strong maintenance and inspection records are key to preventing these disasters, but they are not infallible so you must be prepared to deal with a personal injury when it happens.

Contractor Coverage

Who is covered under the insurance you have secured on behalf of your property management company? You need to ensure that those individuals you retain to regularly or occasionally perform maintenance on a property are still covered under your insurance. If a contractor slips down a staircase due to a broken railing, who will pay?  If your property management company is deemed liable, you could be out of business unless you have the proper insurance.

errors and omissions insurance will cover your tenants

Errors and omissions insurance will cover your tenants in case you make a mistake connected to the property.

Tenant Discrimination

If a current, past, or prospective tenant thinks that he or she has suffered different treatment, been refused service, or been evicted due to discrimination, your business can be put at risk. According to the Insurance Journal, “With the addition of tenant discrimination coverage, property insureds are covered from allegations and suits from current, prospective and former tenants and any other non-employee alleging discrimination (including violations of ADA), harassment, and/or wrongful eviction.”

Are Your Other Business Assets Covered?

Make sure that your other business assets are covered by insurance as well. For example, according to Access MMI, a property management company “should have a general liability policy to include incidents that occur either in the office or, for that matter, in their personal or business vehicle in conjunction with a business-related activity.” Your business not only includes properties, it also includes your building and the other assets that you own.

Help With Legal Costs

Make sure that your property management insurance covers your legal costs. You want to be able to continue to run a business, especially if a claim was not valid in the first place. You can also look to an owner’s insurance policy and a contractor’s insurance policy to complement your policy. For instance, a house fire that is caused by the tenant, not inadequate property management, should be covered by the owner’s insurance.

“The reason I chose Propertyware was because of the alerts features – being able to communicate with owners and tenants inside of the application.” – Chris Turner, Owner/Broker at Turner Properties


As a property manager, you need to make sure that you do your due diligence. Interested in learning more? Contact us  today.

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