What type of insurance addresses legal issues faced by property managers?

Errors and omissions insurance is specifically designed to protect property managers against claims related to negligence, errors, or omissions that might occur during the course of their professional duties. This type of insurance covers legal defense costs and any settlements or judgments that may arise from claims made by clients or tenants alleging that the property manager failed to meet their professional obligations.

In the context of property management, these legal issues could include disputes over contract breaches, failure to provide adequate services, or mismanagement of funds. Errors and omissions insurance is essential for property managers, as it helps mitigate the financial risk associated with potential lawsuits and claims that can be costly and detrimental to their business operations.

General liability insurance, while important for covering bodily injury and property damage claims, does not specifically address the professional liability risks that property managers face. Workers' compensation is focused on protecting employees from job-related injuries, and property insurance safeguards physical assets but does not cover legal liabilities stemming from professional services. Thus, errors and omissions insurance is the most appropriate choice for addressing legal issues unique to property management.