Insurance question: property management

I’m about to open a property management company in Southern California and need some advice.

Our C-Corp was approved, shares issued, and 100% financed from an angel investor. I’ve already satisfied the general prerequisites: broker’s license, clients (haha), basically the whole schebang. I’m sitting on a lot of capital right now and realizing the need for insurance is greater than I initially expected.

I’m unsure of whether there are separate requirements for property management companies, or if E&O Insurance will carry a big enough umbrella to cover the company. Looking for anyone with experience in this area and possibly a referral. Thanks.



E & O is commonly referred to as "Errors and Omissions"! I would recommend you consult with an independant insurance broker who can supply more factual information based on your company specifics.

If necessary this broker should be able to recommend and bring to the table someone who is a Risk Management Professional who can review your companies individual needs! Remember you will need O & D (Officers and Directors) since you are a corporation, you will need “Liability” Insurance, “Umbrella Liability” Insurance, “Workers Comp” Insurance (Through State Fund or a Private Carrier) you will probable also need “Privacy and Network” Insurance, “Malpractice” Insurance, “Crime” Insurance, “Fiduciary Liability” Insurance, “Employment Practices Liability” Insurance, and “Auto Liability Umbrella” Insurance!

You need professional help specific to Risk Management and Insurance Coverages.


It is a good idea to obtain both liability and errors and omission insurance for your business - especially in the heavily regulated state of California. Clients may require you to maintain this coverage as well. Additionally, contracts between the owner and property management company often require the property owner to add the manager as “other insured” on his own rental insurance policy. In rent-control cities which have strict controls on eviction, a property manager would additionally want to make sure the owner has wrongful eviction coverage.

There are insurance companies that specialize in insuring property management companies. Here are a few links that may help you: