What type of insurance should property managers carry?

Property managers should carry errors and omissions insurance because it provides crucial protection against claims that may arise due to negligence or mistakes made in the management of properties. This type of insurance specifically covers legal costs and damages that may result from claims of inadequate work or failure to perform professional duties.

In the property management field, where managers often handle financial transactions, tenant relations, and maintenance responsibilities, the risks associated with errors or omissions can be significant. For instance, if a property manager makes an error in screening tenants or fails to address a critical maintenance issue appropriately, they could be held liable for the resulting damages.

Errors and omissions insurance is designed to mitigate these risks, ensuring that property managers can confidently fulfill their roles while maintaining financial and legal protection. This insurance is essential for safeguarding not only the interests of property owners but also the property management professionals themselves.

Other types of insurance, like homeowner's insurance and property damage insurance, typically apply to specific properties owned or rented by landlords; they do not cover the liabilities that a property manager faces in their professional capacity. Comprehensive liability insurance offers broader protections but may not provide the targeted coverage needed for mistakes related to managerial duties.