Property managers coordinate the day-to-day management of residential and commercial properties on behalf of property owners. Their responsibilities can include managing tenants, coordinating maintenance, collecting rent, overseeing vendors, and handling property-related communications.
Because property managers provide professional services while interacting with property owners, tenants, vendors, and the public, their businesses can face a variety of risks.
The right insurance can help protect your eligible Florida property management business from certain covered losses.
What Insurance Does a Property Manager Need?
Insurance needs vary depending on the types of properties you manage, the services you provide, your employees, and the size and structure of your business.
Depending on your business and eligibility, coverage may include General Liability, Professional Liability, Commercial Property, Business Income, Cyber Coverage, Employment Practices Liability Insurance, Workers’ Compensation, Commercial Umbrella Liability, and other available coverage options.
General Liability Insurance
General Liability can provide protection against certain third-party claims involving bodily injury, property damage, and other covered liabilities arising from your business operations.
Property managers may interact with tenants, property owners, contractors, vendors, and other third parties as part of their daily operations.
Professional Liability Insurance
Property managers provide professional services that can involve significant responsibilities on behalf of property owners.
Professional Liability Insurance may provide protection against certain claims arising from alleged errors, omissions, or negligence in the performance of professional services, subject to the terms and conditions of the policy.
For property management businesses, professional liability can be an important consideration because many of the services provided involve decisions, advice, communications, and administrative responsibilities.
Commercial Property Insurance
A property management company may own or lease office space containing computers, furniture, office equipment, and other business property.
Commercial Property Insurance can provide protection for eligible business property against certain covered losses.
If you operate from a dedicated office, your property insurance needs may differ from those of a home-based property management business.
Business Income Coverage
A covered loss affecting your business property could interrupt your normal operations.
Business Income Coverage may help replace certain lost income and continuing expenses following a covered loss, subject to the terms and conditions of the policy.
Cyber Coverage
Property managers may collect and maintain sensitive information relating to property owners, tenants, vendors, and financial transactions.
Cyber Coverage can provide protection for certain risks involving electronic data, computer systems, and cyber incidents.
The appropriate coverage depends on your business operations and eligibility.
Employment Practices Liability Insurance
If your property management company has employees, Employment Practices Liability Insurance, or EPLI, may be an important consideration.
EPLI can provide protection for certain employment-related claims, subject to the policy’s terms, conditions, and exclusions.
Workers’ Compensation
Workers’ Compensation may be an important part of your insurance program if you have employees. Requirements can vary based on your business and circumstances.
Your needs may depend on the number of employees, their responsibilities, and how your business operates.
Commercial Umbrella Liability
A property management business may have liability exposures that extend beyond the limits of its underlying policies.
Commercial Umbrella Liability can provide additional liability protection above certain underlying policy limits, when available and appropriate for your business.
Does a Property Manager Need Insurance for the Properties They Manage?
Property management business insurance and insurance for the buildings or properties being managed are not necessarily the same thing.
The property owner may maintain insurance on the physical property itself, while the property management company may need coverage for its own business operations and professional services.
The specific responsibilities between the property owner and property manager should be considered when evaluating insurance needs.
Choosing Insurance for Your Property Management Business
When reviewing insurance options, consider:
- The types of properties you manage
- The services you provide
- The number of properties and clients you manage
- Employees and other workers
- Your office and business property
- Your use of technology and electronic records
- Your professional responsibilities
- Your business income and operating expenses
A licensed insurance professional can help you explore available coverage based on your operations and eligibility.
Protect Your Florida Property Management Business
Nieves Insurance Group helps eligible Florida property managers and property management companies explore insurance options designed around their professional services and business operations.
Whether you manage residential rentals, commercial properties, or a combination of property types, the right insurance can help you prepare for covered risks and protect your business.
