Property Manager wants to be named as “Additionally Insured”

[Matthew McNeil]

I'm the primary insured, but my PM wants to be included on Liability policy.  Has anyone heard of this?

My insurer refused to accommodate the request saying they've had problems with PMs named in their policies, although they didn't elaborate.  

[Nathan Gesner]

@Matthew McNeil you guys are wrong. 

The PM is asking to be added as "Additional Insured" or "Additional Interest" to your liability policy. if the house burns down or the roof blows off, the PM will not receive a dime.

Let's say your tenant falls and breaks a leg. Their attorney will sue everybody and anybody, which means the Landlord and the PM both. If the PM is named as "Additional Insured" on your policy, your insurance company will represent both you and the PM. If the PM is not named, your insurance company will represent you and the PM insurance company will represent him. This increases the likelihood that your insurer and the PM insurer may fight against each other and it weakens the defense for both parties.

Naming the PM on your policy is simple, doesn't cost a dime, and does not change your protection in any way except to strengthen it. I manage over 350 rentals and only one insurance company refuses to add us as Additional Interest on the policy. State Farm, USAA, Farmers, AllState, and others have no problem with it.

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