What types of insurance should a property manager maintain?

A property manager should maintain general liability, property insurance, and mistakes and omissions insurance to comprehensively protect both their business and the properties they manage.

General liability insurance is crucial as it provides protection against claims of bodily injury or property damage that may occur on the premises. This can safeguard the property manager from potentially significant financial losses due to lawsuits or settlements resulting from accidents.

Property insurance protects the physical assets of the property being managed. This includes coverage for damages caused by events such as fire, weather-related incidents, or vandalism. By having property insurance, a property manager ensures that they can cover repair or replacement costs, ultimately safeguarding the investment for both themselves and the property owner.

Mistakes and omissions insurance (often referred to as Errors and Omissions insurance) is designed to protect property managers from claims resulting from professional errors, omissions, or negligence in the management of the property. This type of insurance is essential for mitigating risks associated with the complexities involved in property management, such as lease agreements, tenant disputes, or mismanagement claims.

Together, these three types of insurance create a robust safety net for property managers, addressing various risks and liabilities inherent in the profession. Thus, maintaining all three provides a well-rounded approach to risk management in property management activities