Property Manager Insurance from Massachusetts Specialists

What is Property Manager Insurance?

Running a property management business can be a profitable endeavor, but it’s not without potential risks. From liability lawsuits to damage of company assets, these businesses face multiple possible perils. Property manager insurance helps protect property managers in Massachusetts and their businesses from many of the risks they’re exposed to.

Property manager insurance is a specialized form of commercial insurance that’s designed for property managers. Most policies are underwritten as package policies, combining several coverages together to provide robust protection.

Who in Massachusetts Needs Property Management Insurance?

Most businesses and individuals in Massachusetts who are involved in property management should consider carrying property management insurance. This includes those who

• Lease rental properties on behalf of the properties’ owner
• Manage one or more rental properties for the owner
• Contract services for rental properties on behalf of the owner

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Do Landlords Need Property Management Insurance?

While landlords too also usually should carry insurance, their insurance needs tend to be different from those of property managers. Landlord insurance or apartment complex insurance is usually more appropriate for landlords than property management insurance is.

Do Employees of Property Management Businesses Need Insurance?

Most people who are paid employees of a property management business receive insurance coverage through their employer’s policy. In most cases, this insurance coverage is sufficient for employees.

There may be exceptions to this, however, and anyone who works as an independent contractor for a property management business may not benefit from the business’ insurance coverages. Thus, some individuals in this line of work may need their own insurance policy.

Anyone who’s unsure whether a property management policy is appropriate for their situation should speak with an insurance agent who specializes in these types of policies. A knowledgeable agent will be able to review a person’s or business’ risk exposure, and make an informed coverage recommendation.

What Coverages Do Property Manager Policies Provide?

Property managers frequently have an option to adjust the coverages in their particular insurance policy, so the protections that any one policy provides can vary. Nonetheless, there are a number of coverages that lots of policies make available and many property managers select. Some of the more common ones are:

• General Liability Coverage, which may cover common accidents resulting in injury or property damage that a business is responsible for
• Professional Liability Coverage, which may cover errors and mistakes in work that negatively impact another party
• Commercial Property Coverage, which may cover company assets in the event they’re damaged, destroyed or lost in a covered peril
• Business Income Coverage, which may cover losses in income that are caused by a prolonged closure after a covered incident

Professional liability coverage is sometimes referred to as “errors and omissions coverage.”

Do Property Managers Need Commercial Auto Coverage?

Commercial auto coverage is normally required if a vehicle is used for work-related driving, which driving between rental properties may be considered to be. Thus, many property managers need some form of commercial auto coverage.

The type of auto coverage that’s required, however, often depends on what vehicles are used for work. Company-owned vehicles typically are insured through a commercial auto insurance policy, which is akin to a personal auto policy but adapted for a business’ needs. Employee-owned vehicles that are driven for work (aside from basic commuting) usually can be insured through a hired and non-owned liability policy, which generally only affords liability coverage.