Protect Your Business With Five Essential Insurance Coverages All Rental Managers Need
Elaine Simpson
Consultant, Speaker, Virtual Speaker & Author for the Property Management Industry
There are many risks inherent to the resident real estate market. Rental managers commonly face building damage, liability claims, legal actions, employee-related issues, and unexpected operational disruptions. The best way to protect your business against these risks is with a robust insurance policy with the right coverages. Certain insurance coverages are also legally required in most states to maintain compliance with local regulations. Ask your insurance agent about these five essential coverages and what other coverages will be best for your business.
1. General Liability Insurance (GL): GL protects rental companies from the financial burden of lawsuits and settlements. GL covers bodily injury, property damage, and personal injury claims from third parties. GL protects against accident and injury claims from renters, contractors, and the general public.
2. Property Insurance (PI): PI protects against damage to buildings and possessions owned by the management company. PI covers losses from fire, theft, vandalism, and natural disasters, ensuring financial security and quick recovery from property damage.
3. Professional Liability Insurance (Errors & Omissions): Professional liability covers claims of negligence, mistakes, or failure to deliver services as promised. Professional liability is essential for professionals handling legal and financial matters for properties.
4. Workers' Compensation Insurance: Workers' Compensation insurance protects employees hurt on their jobs. In every state except Texas, it is a legal requirement for businesses. Workers' Compensation pays for the lost wages and medical expenses of injured employees while also protecting your company from lawsuits related to workplace injuries.
5. Umbrella Insurance (Excess Liability): Umbrella insurance provides liability protection beyond the limits of standard coverages. Umbrella insurance is a financial safety net that protects against high losses that exceed fundamental policy limits.
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Other Insurance Coverages To Consider
Depending on your specific business model, you may benefit from further protection. Ask your insurance agent about these add-on coverages for rental managers:
Once you have the right mixture of coverages, you must determine the proper coverage limits for each rental. Start by looking up the required coverage limits for your state. Then, speak to your agent about the rental, risks, and budget. They will recommend coverages to mitigate your risks.
For more advice protecting against risks and avoiding liability, the team at Occupancy Solutions has you covered. We'll help you understand how to balance your budget against your risk profile so you can choose the optimal insurance coverage for your needs.