What kind of Insurance do you need as a Property Manager?

I’m a licensed Realtor so I have E&O with my brokerage which covers my business as a Realtor but I’m getting into Property Management with my own company. I do not own the properties I’ll be managing. Do I need a specific type of insurance for Property Management? I can’t seem to find much information about this topic. Are there any property managers our there that can chime in?

Have you talked with your insurance agent?

Disclaimer: I hire property managers, I am not one.

At the very least, I would guess that you need Property Management Professional Liability Insurance (also known as Property Manager Errors & Omissions Insurance, or Property Management E&O) just in case a client alleges that you were professionally negligent, failed to perform professional duties, or in the case of the failure of your work to perform as promised in your contract.

Thanks Dave, I’ll look into that. I don’t personally have an agent as the insurance is through my brokerage and I don’t have specific contact information for whomever our E&O insurance is through. One of my managing brokers did give me the name of a company that provides E&O insurance…I just didn’t know if Property Managers needed some other type of insurance… Thanks again, I’ll try looking into your suggestion…


  1. Liability Insurance

  2. Umbrella Liability

  3. Errors & Ommissions

  4. Officers & Directors

  5. Auto Liability

  6. Bonding - Bonded Associate = Entering Apartments & Working with money!


Thanks Gold River, I’ll look into all of these. As I understand it being bonded protects you against theft from employees. At this point I don’t have any employees, but I’ll try gathering more info to make sure I didn’t misunderstand the real purpose of bein bonded.

Bonding protects your clients (your tenants and your property owners) in the event there is any malfeaseance in the handling of their money. Bonding is just an insurance policy.

Spending the tenant’s security deposits, or, your bankruptcy leads to your inability to pay your property owners’ collected rents or escrowed maintenance deposits are situations where the bonding company will pay the legitimate claims filed against you for return of funds that are not yours to keep.

Interesting. See I learn something new every day. :slight_smile: Thanks!