Protecting Property Managers through Professional Liability Insurance
It’s true that property managers wear many different hats and take on many responsibilities. They oversee the maintenance, security and the overall well-being of the properties and employees they manage. They sometimes serve as leasing agents, real estate agents, appraisers, consultants or construction managers, and to do so, they also must stay up to date on new rules and regulations. They do all this while ensuring lease agreements, purchase and sale agreements and work orders are complete and submitted to the proper authorities.
Juggling all these tasks can be daunting. Needless to say, property managers may make mistakes sometimes (they’re human, right?). Whether that means it’s an error of commission, such as entering the wrong information into a purchase agreement, or an error of omission, such as failing to disclose known pollutants, both can result in a lawsuit.
Without the right type of insurance, the cost of defending a lawsuit can be a financial burden for a property management company. It’s often when property managers believe that a commercial general liability policy protects them from lawsuits including negligence, error or omission, but this is untrue. General liability policies only cover bodily injury, property damage, personal injury and advertising injury claims.
Property managers must protect themselves and turn to property management professional liability insurance (also known as errors & omission insurance). This insurance will protect them from claims such as negligence, misrepresentation, inaccurate advice and violation of good faith and fair dealing. These policies can also be designed to protect against slander, libel and breach of contract, but don’t usually provide coverage for non-financial losses or for intentional or dishonest acts.
Because there’s no standard policy, it’s important to reach out to an experienced professional. Contact an Assurance representative to find out what you’ll need to protect yourself in the future.
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