Property managers like any other business have a need for proper insurance coverage. Property Management Insurance from Polaris Risk Management addresses the many unique risks you face. Let’s face it Property Managers often get caught between the owner and tenants. Property managers are being sued by their own employees but also by staff of the property owner. There is increased litigation holding all professionals to a higher standard, including property managers. Property managers who have an equity interest in the property have increased risks that often lead to conflict of interest claims.

Many property managers don’t think they can be sued. Here are two examples.

  • A property manager oversees a small strip mall. Over a period of years, this property manager does not manage the property as contracted. As a result, the owner in forced to lower the rent. The owner sues the property manager for loss of income.
  • A maintenance worker is employed by for the owner of a complex, but reports to the Property Manager. On his lunch hour, he uses one of the free computers in the office to visit sexually explicit Internet sites. The Property Manager discovers this and fires him. He sues the Property Manager for Wrongful Termination
Here are insurance products that you may not have thought of.

Tenant Discrimination Insurance - Property managers are covered when current, prospective or former tenants allege wrongful discrimination.

Errors and Omissions Coverage - Errors and omissions coverage protects property managers against liability claims from third party financial losses resulting from failure to perform duties as a professional.

Builders Risk Insurance - Many property managers make the mistake of having the contractor purchase builders risk insurance on their behalf. We recommend the property manager secure the coverage in their name.

Property management firms have many exposures that can lead to a lawsuit.  Dealing with owners, residents, employees, vendors and regulatory authorities of both residential and commercial properties can and does lead to lawsuits. Things can wrong, and the property manager is always the one in the middle of the problem.

Polaris Risk Management has specialized in meeting the unique insurance needs of property managers for many years. We have assembled a team with an in-depth understanding of the real estate business to better understand the issues faced by landlords, developers and property management firms today.