Insurance coverage for STR Property Managers?

Question

I'm looking to take on clients to manage their STRs. Would love to hear suggestions for providers that work well with STR managers, and if you think General Liability Insurance is enough to protect against lawsuits in the event a guest gets injured at a property I manage, or damage occurs to their personal property as a result of a leak, fire, etc.. Just want to make sure I have the appropriate coverage for all circumstances that could arise. Thanks!

Michael Baum · Answer

We have standard STR insurance with a 5m umbrella. We just own ourselves so I am sure things are different.

Leslie Anne Morris · Answer

I have E&O because I am also an agent. My primary insurance is commercial liability with an umbrella policy.

John Mocker · Answer

German,

I would suggest the following additional coverages in general and suggest you review this with your agent and attorney (how to draft contracts with clients and subcontractors to best protect you).

1. Professional Liability.  We insure a lot of Condo Associations and often there are claims based on failing to respond to something (snow not cleared, property not protected, etc.).  I can see those type of claims becoming a Property Managers E&O loss in some situations

2. Workers Compensation.   Even if you are using subs to do work on the property, I would recommend having coverage for your firm.

3. Employee Dishonesty/Commercial Crime coverage.  If you are managing clients funds there are exposures to employee theft or crime from out side the organization (check to see if Online theft is covered)

4. Cyber Liability.  May be needed for the online theft.  Also, webite attacks, hacking of your credit card payments, etc.

These may be other coverage you need based on your operations and the state/local requirements.

Andrew Steffens · Answer

Hey German

We have about 70 units in Tampa, FL.  We carry a 2 Million General Liability.  We feel that is enough, I could see a case for E&O possibly, but I cannot see anything else that makes sense.

Jason Bott · Answer

@German Hall sounds like your definitely calling personal lines agents.  First level coverage for a PM is GL and E&O.

Per your examples,

"want to be insured in the event of a guest getting hurt"

This type of claim would typically fall under the Property Owners policy and not the PM."or cleaner/contractor getting hurt while on the property" This would be a claim under the contractors Work Comp.  If you failed to hire a contractor that has WC and they filed against the Property Owner, the the Property Owner could file a claim under your E&O.

GL for a PM can cover your contractors or employees causing physical damage while doing work on the properties, with renovations or simple cleaning between guests.

If an insurance carrier is willing to write coverage for a PM, they usually do not discriminate between STR or annual rentals.

German Hall · Answer

Are these covering short term rentals or long term? If it’s for STR can you please share here or DM me the company? Really want to get this nailed down as soon as possible. Thanks!

Insurance coverage for STR Property Managers?

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