Which type of insurance is crucial for property managers?

Errors and Omissions Insurance is vital for property managers as it protects them against claims arising from mistakes or negligence in the performance of their professional duties. This type of insurance covers legal costs and damages that may result from allegations that the property manager failed to fulfill their responsibilities, such as mismanagement, breach of duty, or failing to follow proper procedures. Since property managers handle various aspects of property management, including lease agreements, tenant relations, and maintenance issues, having this insurance ensures that they are safeguarded against potential financial losses that can occur due to such claims.

While General Liability Insurance is also important because it protects against third-party bodily injury or property damage claims, and workers' compensation is crucial for protecting against employee injury claims, Errors and Omissions Insurance specifically addresses the unique risks faced by property managers in the execution of their professional services. Commercial Auto Insurance is relevant for managing vehicles used in business operations, but it does not cover the specific risks associated with property management practices.