Published: August 11, 2026 | Category: Errors and Omissions
Some property managers include insurance-related responsibilities in their management agreements. For example, some executed property management agreements explicitly list procuring or maintaining insurance for managed properties as part of the scope of management services. When that's the case, if insurance is not properly effected or renewed, owners may allege that the property manager failed to do what the agreement required.
Historically, most property management E&O policies include an exclusion tied to the failure to place, renew, procure, or maintain insurance. That exclusion is standard in professional liability policies (other than insurance agent or broker E&O coverage). As a result, property managers who contractually assume insurance-related responsibilities often have little or no protection for claims arising out of those duties.
A Newer Coverage We Are Offering
Our property management E&O program can now include $250,000 of coverage for a Claim based on or arising out of the actual or alleged failure of the Insured to procure or maintain insurance for any property managed, while providing services as a Property Manager. This coverage is contingent upon the executed property management agreement between the property owner and the Insured explicitly listing this activity within the scope of management services.
What This Coverage Is (and Is Not)
This is not insurance agents' E&O. Rather, it is coverage for property management professional services when procuring or maintaining insurance for managed properties is explicitly included within the scope of services in the executed property management agreement.
If you're interested in this coverage, or would like to discuss your brokerage's liability, you can reach out to me here. We are always happy to discuss these coverages in depth, and help you review your policy together.
