What kind of insurance do I need as a property manager?

Taking on the role of a property manager can be a big responsibility.  Maybe your small apartment complex has turned into a franchise with multiple locations and you need a property manager to, well, manage it all. But how do you start? How do you know that your business and your employees are protected? Here are some vital insurance policies to consider if you’re becoming a property manager.

General Liability

General liability insurance for property managers can help you handle medical bills and legal fees in case someone is hurt on your property’s general premises. You may think that your tenants’ insurance will help you cover these expenses, but in reality, their insurance will only help them cover what happens inside their particular unit.

As a property manager, you’re responsible for all the common areas of your complex, including pools, sidewalks, walkways, the outside structure of each unit, etc. So, if something happens to a renter or one of their guests in one of the common areas, you may be found liable for negligence in court.

So, say that someone slips and breaks a bone or ends up with a concussion while using the community pool. If your pool wasn’t properly supervised by security or a lifeguard during normal pool hours, you could be held liable for their injuries due to negligence. Even though it may have been a tenant or one of their guests that was injured, the injury happened in a common area, so the property manager could be held responsible.

That’s where general liability insurance would come in. It could help you cover the hospital bills and physical therapy costs of the injured, and it could help you cover the costs of a lawyer, court fees, and settlement payouts if the injured decides to sue the complex or you directly.


In addition to taking care of your renters and guests, property managers are also responsible for the upkeep and replacements of damages on their property. Sometimes, these fixes are minor, but sometimes forces of nature or practical jokesters are too much to handle on your own.

That’s why there’s property insurance for property managers. Property insurance can help you cover the costs of repairing or replacing fixtures damaged by natural disasters or large damages by others to your general building structure. Usually, property damage coverage will help you repair damage due to:

  • Fire
  • Lightning
  • Windstorms
  • Certain types of water damage
  • Theft
  • Vandalism
  • Explosions
  • Riots
  • Vehicle & Aircraft damage

For example, remember when we told you that your tenant’s insurance policy can help them cover their particular unit? If they happen to make a home-cooked meal a little too crispy in their stove or oven, their insurance could help them cover the damage to their pots, pans, and kitchen utensils. However, since the refrigerator, the oven, and the countertops are part of the apartment’s property, your property damage coverage could help cover the costs of replacing those fixtures (plus the repair of the walls should the fire spread to other units).

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Workers Compensation

Since your property management business has grown, you can’t be two or more places at once. So, you may have hired some landlords or groundskeepers or collectors to work at each of your properties. Just like accidents can happen to the renters and guests of your apartment complexes, mishaps can also happen to your employees.

That’s why workers compensation for property managers is also important. This type of coverage can help you take care of your employee’s medical bills and pay them a portion of their wages if they’re out due to a work-related injury or sickness. It can even help cover death benefits in an absolute worst-case scenario. Not only does workers compensation insurance help protect you as a property management company, but it’s also a way to show your employees that you care about their well-being, no matter where they are.

Professional Liability Insurance

As a property manager, you’re also responsible for the information you give your tenants and landlords. When leasing a property, you have a duty to give the correct information about your buildings, from building codes to zoning regulations to accurate leasing terms to purchase agreements, work orders, necessary reports to the authorities, and more. However, we’re all human, and we all make mistakes from time to time. When certain mistakes cost tenants money, you could be taken to court.

Luckily, if you have professional liability insurance (also known as Errors & Omissions insurance) as a property manager, your policy can make sure that you have the funds to hire a lawyer, pay court fees, and pay settlements if you are taken to court for this slip of the tongue (or pen). It can even help cover the legal costs even if the incident was not due to an error or fault of yours.

What other types of insurance should I consider as a property manager?

The truth is, no one can lease in a perfect world. So, there are tons of other things that may negatively affect your rental buildings. The ones we’ve listed above are some of the main types of insurance to consider if you’re managing multi-unit properties, but their not the end-all-be-all of the insurance coverages you might need. Here are some other types of insurance that could benefit your rental complex in the long-term:

These types of insurance could help you protect your buildings, complexes, and your entire business (especially umbrella insurance, which can help extend your coverage limits if needed). However, it can be difficult and time-consuming trying to navigate these policies by yourself.

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That’s why our insurance agents are here to help you get the perfect insurance plan for your property management company. We get to know your unique business and the specific risks you face so that we can give you multiple quotes on only the coverage you need. Call us today to get free quotes on the insurance you need to manage multi-unit buildings and rest assured that your booming business is ready for anything.