Is it common to add PM in insurance?

[Peter Sik]

After 9 months of using this PM, PM is asking me to add them as additional insured. Is this common?

"We are currently auditing and updating our records to insure we have copies of all insurance policies for the properties we manage. Our Property Management Agreement states in Section 4.E. the owner shall:

Carry and pay for: (i)public and premises liability insurance in an amount of no less than $1,000,000.00; and (ii) property damage and worker's compensation insurance adequate to protect the interest of Owner and Property Manager. Property Manager shall be, and Owner authorizes Property Manger to be, named as an additional insured party on Owner's policies."

[John Mocker]

Peter,

Although the cost is small for the endorsement (or $0), you are impacting your coverage.  By adding an additional insured you potentially dilute your overall coverage for Liability.  Suppose both the PM and your business are sued and eventually you are both held 50% liable for a $2mm judgement.  Your policy will pay both your share and the PM's share until the limit is exhausted.  A $1mm limit will be exhausted with you still owing $500,000.   I would price the cost of an umbrella policy to get additional liability coverage of $1mm or more.