Question 1

What is a common misconception about Professional Liability (E&O) for Property Managers?

Accepted Answer

Property managers think the owner's policies cover them. Owner's policies don't cover the manager's professional acts.

Question 2

What happens if property managers don't have Professional Liability (E&O)?

Accepted Answer

Failed habitability claim — manager allegedly ignored repeated mold reports. Settlement $190K. E&O pays.

Question 3

What is a common misconception about General Liability for Property Managers?

Accepted Answer

Manager's GL needs coverage for every property managed; owner-named-additional-insured is standard.

Question 4

What happens if property managers don't have General Liability?

Accepted Answer

Tenant injury at managed property names manager — $40K. GL pays.

Question 5

What is a common misconception about Employment Practices Liability (EPLI) for Property Managers?

Accepted Answer

Property managers face fair-housing claims (FHA discrimination) at higher rates than most service businesses.

Question 6

What happens if property managers don't have Employment Practices Liability (EPLI)?

Accepted Answer

FHA discrimination charge from rejected applicant — defense $48K, settlement $30K. EPLI pays.

Question 7

What is a common misconception about Cyber Liability for Property Managers?

Accepted Answer

Tenant databases hold extensive PII (DOB, SSN for credit checks, banking).

Question 8

What happens if property managers don't have Cyber Liability?

Accepted Answer

Phishing exposes 2,400 tenant records — $140K response. Cyber pays.

Question 9

What is a common misconception about Workers' Compensation for Property Managers?

Accepted Answer

Maintenance staff face injury exposure.

Question 10

What happens if property managers don't have Workers' Compensation?

Accepted Answer

Maintenance lifting injury — $18K. WC pays.

Property Managers Insurance Coverage Guide | RISKX