Being a Property Manager is No Joke
Property management insurance frees you to carry out your job as the property manager of a residential or commercial property without a black cloud of liability threatening your personal assets.
Property management insurance can be a gray area. All responsibility and liability ultimately belongs to the property owners. However, if you are a property manager, you assume a certain level of responsibility for the daily operations of someone else’s property.
If you are an employee of a rental complex corporation or a property management firm and receive a payroll check, then you probably don’t need any liability coverage. However, most property management professionals are independent contractors. If that is you, then you are a small business owner. Before you sign any property management contracts, you need small business liability coverage to protect your own financial assets from lawsuits and judgments.
Property Management is a Tough Job
The responsibilities of a property management professional include background checks of potential renters to make sure they meet the expected standards. Imagine leasing an apartment to someone with a criminal background that didn’t show up on reports. If he commits a crime (including bodily injury or property damage) the renters and property owners will be looking at you.
It’s up to you to respond to the renters’ requests for repairs and execute the repair quickly. If it doesn’t happen fast enough and someone gets hurt, you bear the responsibility. Property managers face a lot of challenges when dealing with renters. You are in charge of rent collection. Did you pre-qualify the apartment renter accurately to assure he or she can afford the rent? You must also be careful of wrongful eviction.
As the professional property manager, you are often at risk of overlooking something. E&O insurance (errors and omissions insurance) is the type of insurance coverage designed to protect property managers. Property management insurance guards against both the fear and the reality of those mishaps and mistakes that accompany a busy life in the real estate industry.
Yes! Property Managers Really Do Need Insurance Coverage!
As the property manager, you assume a great deal of responsibility for the safety of the people who live at or visit the property. Each task property managers face carries risk of liability. Luckily it is rare that anyone responds to mistakes or oversights with a lawsuit. Most will appreciate a job well done.
Still, it only takes one. We recommend that you put liability coverage in place by securing small business property management insurance including general liability insurance, as a minimum. Circumstances may indicate additional insurance policies. Advice and assistance from an experienced insurance agent will ensure that you have the right type of insurance coverage.
Who Will Pay Your Defense Costs?
Once your personal assets are protected, you can turn your mind to being the property management professional instead of the liability police. You’ll know there are attorneys are to represent you if somebody does perceive negligence and file a lawsuit. Your liability coverage can cover the costs associated with such a lawsuit. To find out more about the best insurance coverage for Property Managers, contact John today!
ASK JOHN FOR THE BEST INSURANCE QUOTE YOU’LL GET ALL DAY!