What Kind of Insurance Do I Need for a Property Management Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 days ago
- 2 min read
Running a property management business comes with unique risks—from tenant disputes and property damage to employee injuries and cyber threats. Protecting your business with the right insurance is essential for financial security, legal compliance, and client confidence.
At Wexford Insurance, we specialize in providing property management business insurance that covers all aspects of your operations, from office property to vehicles, equipment, and employees.
Essential Insurance for Property Management Businesses
This policy protects your business if someone is injured on a property you manage or if you cause property damage. It’s often required by clients and landlords before signing management contracts.
Coverage Examples:
Slip-and-fall accidents at managed properties
Damage caused during maintenance or inspections
Legal fees from liability claims
Mistakes happen. This coverage protects you if a client alleges negligence, errors, or failure to perform professional duties.
Coverage Examples:
Incorrect financial reporting or accounting errors
Failing to enforce lease terms properly
Negligent tenant screening or placement
Protects your office, furniture, equipment, and property under your care from events like fire, theft, or natural disasters.
Coverage Examples:
Office computers and software
Maintenance tools and machinery
On-site storage areas for tenant property
Required if you have employees, this insurance covers medical expenses and lost wages if staff are injured while working.
Coverage Examples:
Maintenance staff injured during repairs
Office staff injured on company property
Liability for contractors, if not separately insured
Covers vehicles used for property inspections, maintenance trips, or transporting staff. Many property managers rely on company cars or vans to visit multiple locations daily.
Coverage Examples:
Damage to company vehicles in accidents
Liability for injuries caused by employees while driving
Coverage for rented vehicles used for business purposes
Protects valuable tools and equipment used in property management operations, such as HVAC tools, maintenance equipment, or electronic devices.
Coverage Examples:
Theft or vandalism of tools stored at the office
Damage during transportation or use on-site
Repair or replacement costs for specialized equipment
Property managers handle sensitive tenant and financial data. Cyber liability protects against data breaches, ransomware, and other cyber threats.
Coverage Examples:
Hacked tenant records or banking information
Costs for notification, legal fees, and credit monitoring
Business interruption due to IT system failure
Why Proper Insurance is Important
Client Requirements: Many property owners require proof of insurance before hiring a management company.
Financial Protection: Protects your business from lawsuits, accidents, and unexpected losses.
Credibility: Demonstrates professionalism and builds trust with clients.
Regulatory Compliance: Certain policies like workers’ compensation are legally required.
At Wexford Insurance, we specialize in creating customized insurance programs for property management businesses, ensuring you’re fully protected for both everyday operations and high-risk situations.
Final Thoughts
Operating a property management business without the proper insurance is risky. By securing comprehensive coverage you can protect your business, clients, and employees. Proper insurance also enhances your credibility and can help you win contracts with property owners.
Contact Wexford Insurance today.
