Insurance for Property Management Firms

Property management firms are in the unique position of having to keep two types of customers happy. The owners of a home or apartment building are your customers, and the renters of those residences are as well. Protect your property management firm from having severe financial or legal problems by making sure you carry the right types of business insurance coverage.

General Liability

General liability is the best type of base business insurance you should carry for your property management firm. This coverage protects you from financial problems that can be caused when customers injure themselves, or receive property damage, when they are on your business premises. General liability can also protect you from issues that arise due to product liability, your company advertisements, and services that you have previously rendered.

General Liability Insurance Includes:

Premises Liability – Premises liability is the section of your general liability policy that protects your customers. If a customer comes to physical harm while they’re on your business premises, your premises liability coverage will pay for any medical bills or rehabilitation services they might require. This coverage also protects you from having to pay if a customer’s property comes to harm while on your business premises. If a customer’s property is damaged or destroyed at your business location, your premises coverage will pay for the repairs or replacement.
Products Liability – If your property management firm sells products to clients, you can be held liable if those products bring harm to your customers. Likewise, if your company creates an advertisement that brings harm in some way, such as being libelous or using material without the proper authorization, your company be held legally responsible. Products and advertising liability coverage pay customer damages and suffering. It also helps pay for your legal defense expenses and any settlements and judgments that arise.
Completed Operations – This part of your general liability business insurance package pays for damages that are the result of services you have rendered in the past. If, for example, one of your property owner customers tasks you with taking care of an electrical problem in their home and it is later found that the steps you took caused a house fire, that customer may sue your company for damages. Your completed operations coverage can pay for the damages and resulting related expenses.

Business Owners Policy

All of the basic general liability coverage is included in another form of business insurance known as a business owners policy, or BOP. A BOP focuses on providing your property management firm with protection against the loss or destruction of physical and intangible assets. A BOP can be tailored to meet your specific business insurance needs, and includes options such as the following:

Buildings and Contents
Business Income and Extra Expense
Electronic Data
Newly Acquired or Constructed Buildings
Employee Dishonesty Coverage

Business Auto

Business auto insurance helps protect you from financial stress that is caused by car accidents. If you or an employee of your firm is involved in an auto accident, your auto insurance policy can pay for bodily injuries to the people involved and it can pay for repairs to the vehicles.

Workers Compensation

Most states require that you carry workers comp insurance on your employees. This coverage pays for the employee’s medical bills and related expenses if they are ever injured while performing their job duties.

Commercial Umbrella

Umbrella coverage is additional insurance above and beyond your standard policies. If you exhaust the limits of your regular business insurance policies, an umbrella policy can provide you with additional.