Property Management Insurance Cost

Insurance Guides      Business Insurance      Property Management Insurance Cost

Overseeing residential and commercial properties can be a complicated job with a variety of risks. You have to keep the building owners, current tenants, and prospective renters all happy and their interests rarely line up. While you may do your best to satisfy everyone’s needs, there is the possibility that something will go wrong or someone will get upset enough that they decide to sue. That is where property management insurance comes into play. It protects you from the liabilities of these claims and other potential legal costs and damages.

After reading this guide, you will have enough information about property management insurance cost to make an informed decision about your own policy.

We Cover in This Guide

  • How much does property management insurance cost?

  • What kind of property management liability risks are there?

  • What does property management insurance cover/not cover?

  • Benefits and risks

  • Types of insurance you may need

  • Tips for buying

  • FAQ

  • Summary

How Much Does Property Management Insurance Cost?

Property management insurance costs range from $39 to $89 per month depending on your budget, number of employees, number of tenants, coverage, property type, and limits. Below are the typical prices for common policies.

  • Basic (essential coverage to meet client demands): $39 per month for general liability (GL)
  • Standard (protect your business against service errors): $89 per month for general liability (GL) + errors & omissions (E&O)
  • Pro (get protected against employment-related issues): $89 per month for general liability (GL) + errors & omissions (E&O) + workers’ compensation

When you have specific requirements, most providers will allow you to customize a policy with the coverage to meet your particular needs.

What Kind of Property Management Liability Risks are There?

Since the responsibilities of a property manager are extremely far-ranging, the liability risks are equally expansive. No matter how careful and meticulous you are, mistakes happen or something outside of your control could go wrong and you could be held responsible. Below are some examples:

  • A current or prospective tenant, renter, guest, or employee gets injured in your common area

  • The vehicle of a current or prospective tenant, renter, guest, or employee is damaged in your parking garage

  • A pipe bursts and damages the property of tenants or renters

  • Claims of wrongful or negligent evictions

  • Discrimination claims from current or prospective tenants

  • Claims of failure to perform contractual professional duties (e.g., lease enforcement, maintenance, repair, safety, cleanliness)

What Does Property Management Insurance Cover/Not Cover?

Property management insurance policies provide essential coverage for those overseeing condos, apartments, office buildings, and/or public spaces. These potential claims can vary from a disgruntled potential tenant suing for a belief that they were improperly denied a lease, to a current renter slipping in a common hallway outside their apartment. Most property management insurance plans cover these scenarios and others that fall into the following categories:

  • Third-party bodily injury

  • Third-party property damage

  • Personal injury

  • Products/completed operations

  • Professional negligence

  • Retroactive claims (previous contracted work)

  • Subcontractor errors

  • Work-related injury and illness

  • Ongoing medical care (such as rehab)

  • Missed wages during recovery

While typical property management insurance policies cover most potential liabilities, there are certain risks that are not included and may require additional coverage. They can include:

  • Damages beyond the limit of your policy

  • Criminal, fraudulent, or malicious acts

  • Punitive damages

  • Auto accidents while driving to a property

Benefits and Risks

Property management insurance offers various benefits to cover risks, including:

  • Protecting business assets: Whether you operate a business managing several properties or are a sole proprietor handling only one, the potential liabilities from any claims could wipe out your company or personal finances. Property management insurance provides essential protection to protect you from these risks.

  • Cover legal expenses: If a current or potential tenant, third-party, or employee sues you, you are protected from the costs of fighting lawsuits and the damage if you are found liable.

  • Peace of mind: ​Knowing that your business is covered in the worst-case scenario allows you to focus on your properties along with their owners and your current and future tenants without being preoccupied with what could go wrong.

Types of Insurance You May Need

  • Errors & Omissions Insurance (E&O): Provides protection for claims of negligence or failure to perform professional duties.

  • Cyber Liability Insurance: Covers you from claims related to data breaches and other related cyber risks. Pays for notification costs, errors & omissions, media liability, and other expenses.

  • Workers’ Compensation Insurance: Provides for employee medical costs and wage replacement for injuries and illness that occur while performing employment-related duties.

  • Business Owners Policy (BOP): Specialized insurance policy that typically combines commercial property and general liability into one package.

  • General Liability Insurance: Protects your business against lawsuits, investigations, settlements, and damages from third-party claims of property damage, personal injury, bodily injury, and other related scenarios.

  • Commercial Property Insurance: Pays to replace or repair covered damage to your own assets.

Tips For Buying

When considering property management insurance costs, keep the following in mind before making your decision:

  • Work with an independent agent: An independent insurance agent will help direct you toward providers with the best rates and the most experience covering property managers

  • Identify your risks: Be sure to thoroughly analyze your business, considering your properties, owners, tenants, and communities, to identify potential risks

  • Compare quotes: Policy costs vary between insurers. Consider several quotes to find the best rates and coverage.

  • Bundle policies: Providers will often provide discounted rates when you combine certain key coverages like a business owners policy (BOP) with general liability and property.


- I have to drive to different properties throughout the day in my own car. How do I protect myself from liabilities in case I get into an accident?

Purchased non-owned and hired auto insurance. This policy covers damages or injuries while performing business-related tasks in a personal vehicle.

- Do I need workers’ compensation insurance?

Most states require you to have workers’ compensation insurance if you employ at least two people. Even if it is not required, your employees will feel better knowing they are protectied in case something happens.

- How do I protect myself against extremely large claims?

Your basic property management insurance policy may have certain limits. Umbrella insurance covers damages above the limits of typical policies.


Property management insurance protects your business against the potential losses and damage from the various risks involved in the industry.

By understanding property management insurance costs and determining your needs, you will know that your policy covers all your needs and feel secure that your business is safe.

Typical cost is


Property management insurance costs range from $39 to $89 per month depending on your budget, number of employees, number of tenants, coverage, property type, and limits.

Related cost guides