Why do property managers need insurance?
Complications with tenants
From property law to environmental health and fluctuations in the rental market, you know your industry inside out. But even the most experienced property managers can face tenant struggles. If a tenant claims you made a mistake, such as giving advice that led to a wrongful eviction or installing faulty electrics, then your business could end up in court. Professional indemnity insurance can assist residential property managers with covering the cost of court cases related to such issues.
Property management firms may be tasked with looking after fixtures and fittings, but accidents happen, so liability insurance helps if you accidentally cause damage. When your job involves mid-tenancy visits, there’s a possibility you could damage a latch while trying to open a stubborn door, or brush past a tenant’s television, causing it to topple. While you always respect others’ property, accidents can occur. A public liability insurance policy can help your business with related costs.
Whether you manage commercial properties, social housing or holiday homes, the work you do requires plenty of communication. This means you probably store information such as names, addresses and financial records. As such, data breaches can have big consequences for property managers – fortunately, cyber insurance can help. If a criminal gets into your work database or an employee sends data to the wrong mailing list, this cover helps with the cost of recovery.
What insurance is available for property management?
If you’re not sure what you need, tell us a little more about your property management business. We’ll help you to build your quote and explore any other insurance needs.Build my cover
Insurance for property management: FAQs
How much does insurance for property management businesses cost?
Hiscox business insurance starts at £10* a month for property management organisations and self-employed professionals. The precise cost will depend on the cover you choose to include and the cover limits you select.
Flexibility is at the heart of the Hiscox approach to business insurance, so you’re able to select a single type or a handful of different covers. We’ll then ask you to set a policy value and answer a few questions about the nature of your company – the cost will be based on these factors.
Read more in our guide on the cost of business insurance.
*Figures based on policies from at least 10% of our customers in 2019.
Do I need public liability or professional indemnity insurance?
Public liability and professional indemnity insurance are two of the most common business insurance products. Both covers help protect property management companies against legal costs relating to defence or damage payments, but they play very different roles.
Public liability insurance helps if a third party seeks compensation after an accidental injury or property damage – for instance if a client bangs their head on a low ceiling during a property visit. Professional indemnity does the same for complaints about the quality of your service. If a client questions your pricing advice and accuses you of negligence in your role, PI insurance can cover the cost of defending yourself against such a claim.
Do you have any property-based real-life claims stories?
Going about your business is usually plain sailing, but business risks can arise from unexpected places. One of our customers, the owner of a Cotswolds farm, found himself facing a claim when a member of the public was injured by an electric fence on his property.
A property manager could face a similar claim if a tenant slips on a loose floorboard on the stairs or even if a pedestrian is hit by a falling television aerial.
Read about our customer’s story – and how insurance helped with his denial of liability counterclaim – in our claims stories series.
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