Property Management Insurance: Cost & Quotes From $35/mo

Table of contents

Property management firms help landlords maintain and track the income of apartments, condos, and other rental properties. These businesses also work to secure the properties of real estate investors. As a property management business owner, you know there are excellent opportunities in this growing industry but also risks that come with it. To protect yourself against risks like liabilities and lawsuits, you will want to turn to property management insurance. Keep reading to discover the policies and topics related to this critical part of your business plan.

General Liability Insurance for Property Management  

CoverWallet  NEXT (Best) Thimble Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $2,000,000 $1,000,000/$2,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $2,000,000 $1,000,000/$2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $2,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $2,000,000 $1,000,000 $1,000,000
Tenant’s legal liability coverage limit  $300,000/$1,000,000 $300,000 $100,000 $100,000 $1,000,000
Waiver of subrogation included? Yes No Included Can be included No
Hired/non-owned auto liability coverage included? Yes No No Can be included Can be included
Equipment breakdown floater included? No  Yes Yes Can be included Can be included
Can you get a certificate of insurance online? Yes Yes Yes Yes Yes
Name additional insureds? Yes Yes Yes Yes Yes
Deductible $0 $0 $0 $0 $0


Your property management liability insurance package will need general liability protection. This policy protects your business from third-party liability claims like property damage and bodily injury. Examples of coverage include:

  • Someone walks into your property management office. While there; they slip, fall on the floor, and need medical treatment

  • An environmental hazard on a property you manage causes someone to get ill

Add-Ons to General Liability Insurance for Property Management

You can customize general liability insurance for property managers with add-ons or endorsements such as:

  • Product liability–Covers liabilities associated with products or items you sell that might cause injury to a client

  • Employment practices liability–Protects your business from employee claims of discrimination, wrongful termination, and workplace harassment

  • Tools and equipment coverage–Helps your business tools and equipment get protected from theft, vandalism, and other covered perils

Coverage Limits of General Liability Insurance for Property Management

A standard property management insurance coverage for general liability will be $1 million per occurrence and $2 million in aggregate.


Does My General Liability Insurance Policy Cover Advertising Injury?

Yes. Most general liability policies will automatically include coverage for personal and advertising injuries. These claims arise from invasion of privacy, slander, libel, and copyright infringement. 


Is General Liability Insurance Adequate Insurance for My Property Management Company?

Yes. Your general liability insurance for property management company will need to cover a host of issues from damages. General liability insurance covers many of these damages. However, there are exclusions. Examples include liability for worker injuries and liability for dishonest employee actions.


Professional Liability  Insurance for Property Management

CoverWallet  NEXT Thimble (Best) Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $1,000,000 $1,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $1,000,000 $2,000,000
Name additional insureds? Yes Yes Yes Yes Yes
Waiver of subrogation included? Yes No Yes Can be included No


Your property management professional liability insurance will cover lawsuits, legal fees, and court judgments resulting from your business’s mistakes or oversights. Examples include:

  • You forget to inspect a property, and a community member sues you for failing to deal with pests

  • Your property management company neglects to repair a property, causing a resident to sue you for negligence

Add-Ons to Professional Liability Insurance for Property Management

Your property management insurance can be bolstered further through the use of add-ons that fortify your policy coverage. Some examples include:

  • Additional insured–This lets you name additional parties to an existing policy

  • Extended reporting period–Bolsters your claims-made professional liability policy by allowing you to file claims even if your policy period has expired

Coverage Limits of Professional Liability Insurance for Property Management

Professional liability insurance will offer around $1 million in coverage for property management businesses.


What Are Some Other Names for Professional Liability Insurance?

There are several terms that you may see professional liability insurance referred to as. For example, it is also called professional indemnity insurance for property management by some insurers.

Another name you might see professional liability insurance listed as is property management errors and omissions insurance. Your property managers e&o will cover claims for breach of contract, violation of good faith, and other related perils active in your property management business.


Does Professional Liability Insurance Cover Employee Discrimination Claims?

No. Refusing to hire someone or other issues that result from your employment-related practices are generally not covered by a professional liability policy. You would need to get an employment practices liability insurance policy to cover the costs of those claims.

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Commercial Property Insurance for Property Management  

CoverWallet NEXT (Best) Thimble Hiscox The Hartford
Building coverage limit (minimum) $50,000 $260,000 $25,000/$500,000 $25,000 $60,000
Contents coverage limit (minimum) $50,000 $22,000 $25,000/$500,000 $25,000 $60,000
Outdoor signs Excluded $2,500 Excluded Excluded Excluded
Accounts receivable  Excluded Excluded $5,000/10,000 Included Excluded
Money and securities Excluded $2,500 $1,000 Included Excluded
Lock and keys  Excluded $2,500 Excluded Excluded Excluded
Business interruption floater Excluded Included Included Included Excluded
Equipment breakdown floater Excluded Included Excluded Excluded Excluded
Inland marine insurance floater Excluded Excluded $10,000 Excluded Excluded
Employee dishonesty floater Excluded $5,000 $2,500 Included Excluded


Your commercial and residential property management insurance program will need a way to protect your business building. Commercial property insurance is one way to protect your business from the damages that result from fire, theft, vandalism, and other covered perils. 


Add-Ons to Commercial Property Insurance for Property Management

  • Flood insurance–This policy allows you to include forms of water and flood damage that a typical commercial property policy would exclude

  • Outdoor sign coverage–Protects business signs outside your business building from covered physical damage

Coverage Limits of Commercial Property Insurance for Property Management

This type of property management business insurance will offer a limit of $60,000. Your coverage limit will depend on the property value you need insured.


Can I Get Coverage for Property Outside of My Business Premises?

Outdoor property coverage is an add-on to commercial property insurance that covers fences, signs, and temporary locations that you use for business purposes.




Business Owner’s Policy for Property Management

CoverWallet Thimble (Best) NEXT  Hiscox The Hartford
General liability aggregate limit  $2,000,000 $2,000,000 $2,000,000 $300,000 $1,000,000/$2,000,000
Commercial property coverage limit  $50,000 $500,000 $260,000 $25,000 $75,000
Optional policies can be added? Yes Yes Yes Yes Yes
Name additional insureds for free? Yes Yes Yes Yes Yes
BOP discount? Yes Yes Yes Yes Yes


Business owner’s policy combines general liability insurance and commercial property insurance. This means your policy will cover damages to a business building and liability claims. Example coverage includes:

  • A thief breaks into your business office and steals some electronics and computers

  • A covered natural event causes physical damage to your property

  • Someone slips and falls in your office

Add-Ons to Business Owner’s Policy for Property Management

  • Inland marine–Protects your property management business’s tools and equipment when transported over land

  • Employee dishonesty–Helps your business pay for costs related to employee actions that cause financial harm. These include stealing from the business, cyber crimes, and forgery

Coverage Limits of Business Owner’s Policy for Property Management

This insurance for commercial property managers  will have around $1 million in general liability coverage and $50,000 in commercial property coverage in a business owner’s policy.


Am I Legally Required to Purchase Commercial Property Insurance for My Property Management Business?

No. Commercial property insurance is not a legal requirement for property managers. However, some clients may require that you have similar coverage provided by a BOP to be approved to do business with them. One of these clients may ask your business to provide proof of insurance.


Tools and Equipment Insurance for Property Management

NEXT  Thimble Hiscox The Hartford
Aggregate limit $3,000/$10,000 $2,500/$5,000 $15,000/$25,000 $5,000-$10,000
Covers hired and borrowed equipment? $3,000/$10,000 $2,500/$5,000 No Yes
Miscellaneous equipment also covered? $5,000/$10,000 No Yes Yes
Offered as an endorsement to general liability insurance? Yes Yes Yes Yes
Deductible $500 $500 $0 $0


Tools and equipment insurance is a property management insurance policy that helps repair and replace your tools when a covered event happens to them. Some examples include:

  • Your business suffers a hit-and-run attack where your tools are stolen

  • While at a job site, your tools get damaged by another party

Add-Ons to Tools and Equipment Insurance for Property Management

  • Earthquake insurance–Provides compensation for tools and equipment damaged during earthquakes and landslides. Earthquakes are generally excluded as covered incidents in many commercial insurance policies

  • Equipment breakdown–Protects tools and equipment from other sources of damage like mechanical failure and electronic disruption

Coverage Limits of Tools and Equipment Insurance for Property Management

Your property manager insurance coverage for tools and equipment will be between $5,000 and $20,000.


What is Installation Floater Coverage?

The tools and equipment coverage of your  real estate property management insurance program can cover building materials with installation floater coverage. This policy protects the value of these building materials for things like shingles, flooring, and windows of properties you manage.


Commercial Auto Insurance for Property Management

Your real estate management insurance package will offer commercial auto insurance to  protect business vehicles. For this, you will need commercial auto insurance. This policy protects your commercial vehicles when they are being used in service of your business. Your commercial auto policy will offer coverage in areas that include:

  • Collision–Protects vehicles from damage costs when they get into a road collision with another vehicle

  • Comprehensive–Enables benefits when your vehicle is damaged physically by events other than road collisions

  • Auto liability–Helps you pay out any liability costs you may be responsible for from using your commercial vehicle

Add-Ons to Commercial Auto Insurance for Property Management

  • Roadside assistance–Helps pay for services when your property management business vehicle is stuck on the side of the road and needs towing or other similar services

  • Rental reimbursement–This policy pays back any costs you need to rent vehicles in your property management business due to a damaged vehicle needing repair

Coverage Limits of Commercial Auto Insurance for Property Management

Commercial auto insurance will typically offer a liability coverage limit between $500,000 and $1 million for property managers.


Workers Compensation Insurance for Property Management  

Workers’ compensation insurance pays employees when they get sick, injured, or disabled while working. Examples of this coverage include:

  • While working at your office, an employee trips over some inventory and hurts their leg, needing medical attention

  • One of your employees cannot work after contracting a disease

Do I Need Employer Liability Protection?

Yes. Employer liability protection is a policy that helps defend your business against lawsuits filed by employees for injuries sustained at your workplace. Luckily, many workers’ compensation policies will automatically include this type of protection.


What Should I Do If One of My Employees Gets Hurt On the Job?

The injured employee has a responsibility to report the injury to their employer. After this, the employer must alert the insurer of the incident through a report that includes the injury’s date, time, and circumstances. Lastly, you will file a workers’ compensation claim so the employee can get benefits immediately.


Excess Liability Insurance for Property Management

Excess liability insurance is a policy that extends the coverage of an existing policy beyond the typical coverage limits. Suppose your professional liability insurance only has $500,000 and a $1 million lawsuit is filed. Excess liability insurance can cover the remaining $500,000, so that you’re still safe. 


Do I Need To Pay a Deductible With Excess Liability Insurance?

No. An excess liability policy will not come with a deductible typically. This means that once you satisfy a deductible requirement with the original policy, you will not need to do it again to be qualified for excess liability coverage.


What Are Some Typical Limits to Excess Liability Insurance?

Excess liability coverage can be purchased in increments, with limits up to $25 million or more.

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Property Management Insurance Cost

Cost per Month Cost per Year Deductible
General liability insurance $42 $504 $0-$500
Professional liability insurance $47 $564 $1,000-$2,000
Excess liability insurance $45 $540 $1,000-$2,000
Commercial property insurance $73 $876 $1,000-$2,000
Business owner’s policy $90 $1,080 $1,500
Tools and equipment insurance $52 $624 $500-$1,000
Commercial auto insurance $63 $756 $500-$1,000
Workers compensation insurance $99 $1,188 $2,500-$5,000


The average property management insurance cost is $42 per month or $504 per year for a $1 million general liability policy. Factors that affect premiums are claims history, policy limits, deductibles, number of employees, location, and annual revenues. Here’s a table providing further details of the property management company insurance cost estimates by showing how much the best companies charge for a $1 million general liability coverage:

Cost per Month Cost per Year Best for
NEXT $25 $300 Best overall; Fastest general liability insurance
The Hartford $27 $324 Real estate industry experience
CoverWallet $30 $360 Comparing property management insurance quotes online
Tivly $32 $384 Comparing property management insurance quotes over the phone
Thimble $35 $420 Property management policy customization
Hiscox $38 $456 Property manager liability insurance with worldwide coverage


Compare a property management insurance quote to another to better understand your actual rates. Click the “Get Quotes” button on this page to start. 

Compare Cheap Property Management Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Property Management Insurance Companies

The property management insurance companies in the reviews below are some of the best. Each will bring something to the table for your insurance policy. Look at the reviews below to find out the strengths of these companies and what unique benefits to consider.


NEXT Property Management Insurance

Pros 

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons 

  • Couldn’t find any

NEXT is a highly-rated insurer that helps you manage property management risk through different policies. This insurance option offers a 10% discount when you bundle multiple policies and offer options like general liability, workers’ compensation, and commercial property. NEXT also boasts a B+ rating with the Better Business Bureau. 

Best for: Best overall; Fastest general liability insurance

Average cost: $25 per month

Our rating: 10/10 


The Hartford Property Management Insurance

Pros 

  • Local agents to assist your business

  • Long-standing insurer with over 200 years of underwriting experience

  • Helpful mobile app

Cons 

  • Some states are not covered

The Hartford has excellent insurance policies with many options to protect your business. They have an A- rating from AM Best and an A+ Better Business Bureau rating. This company makes getting a quote simple and reliable thanks to its numerous years of experience. The Hartford started as a fire insurance company in 1810. Since then, they have also become experts in many other industries.

Best for: Real estate industry experience

Average cost: $27 per month

Our rating: 10/10  


CoverWallet Property Management Insurance

Pros 

  • Allows you to call if you want to skip filling out an insurance form.

  • Get a quote without committing to a purchase

  • Allows you to compare insurance policies between insurers

Cons 

  • Not an insurance company but an insurance broker

CoverWallet acts as your digital gateway to the world of online insurance. They offer business owner’s policy, general liability, and workers’ compensation options for property management business owners. They have a dedicated section for property management insurance that clears up any questions you might have. All-in-all, they are an excellent option for a first-time insurance buyer. Coverwallet has an A+ Better Business Bureau rating.

Best for: Comparing property management insurance quotes online 

Average cost: $30 per month

Our rating: 10/10 


Tivly Property Management Insurance

Pros

  • Takes the work out of insurance buying by matching you with insurers

  • Get quotes from multiple insurers that are tailored to your needs

  • Quick phone response rate

Cons 

  • You need to talk to a representative to get quotes

Tivly has a huge selection of 200 partners to select your property management insurance policies. They answer the phone quickly to make the process as streamlined and quick as possible. Thanks to their deep selection, you will have no trouble finding something that fits your personal situation. Tivly has an A rating from the Better Business Bureau. Call now to compare quotes over the phone. 

Best for: Comparing property management insurance quotes over the phone 

Average cost: $32 per month

Our rating: 10/10 


Thimble Property Management Insurance

Pros 

  • Offers short-term coverage

  • Excellent mobile app

  • Offers resources to help first-time customers get the hang of the ropes

Cons 

  • You can’t reach customer service by calling 

Thimble is another excellent choice of insurer for property managers. They stand out from the rest by the amount of customization you get at an affordable price. They let you set your policy terms down to the hour, day, or month and pride themselves on helping customers get policies quickly. Thimble has secured an A+ rating from the Better Business Bureau.

Best for: Property management policy customization

Average cost: $35 per month

Our rating: 10/10 


Hiscox Property Management Insurance

Pros 

  • A leading insurer of specialist insurance policies

  • Passionate service professionals who work with you

  • Discounts for bundling multiple Hiscox insurance plans

Cons 

  • The business owner’s policy is only available in 43 states so far

Hiscox offers the best personalized and tailored insurance experience from their dedicated agents. They have a dedicated section to the challenges property managers face and which solutions they offer to keep you protected. In particular, their professional liability policy stands out for how customizable it is and how it addresses specific risks in your field. Hiscox has over 3,000 employees in 14 countries. Their customers are from all across the world.

Best for: Property manager liability insurance with worldwide coverage

Average cost: $38 per month

Our rating: 10/10 

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