STR management exposure is distinct from long-term PM — guest traffic is much higher, leading to an increased level of bodily injury/property damage exposure. PBI Group writes E&O coverage tailored to vacation-rental firms across all 50 states.
Short-term rental management is a unique business. Local ordinances on Airbnb and Vrbo vary city to city. And practically every week brings a new guest into a property.
One of the top E&O exposures for short-term rental management firms is bodily injury/property damage. Sickness, wrongful death, injury, mental anguish, emotional distress, loss of use to or damage to property are all usually included in the technical legal or insurance definitions of that phrase, “bodily injury & property damage.” Because General Liability policies almost always exclude claims resulting from professional services, this leaves a gap where many generic E&O policies also exclude injury or damage claims when related to PM professional services.
PBI Group writes vacation-rental E&O with STR-aware language — that actually covers these contingent bodily injury/property damage claims that are resulting from your professional services as a vacation rental property manager. And if you have a mix of traditional long-term residential PM or real estate sales in addition to short-term units, we can also help.
Many STR managers take care of properties in which they also have ownership interest. Many common programs exclude E&O coverage for claims related to those properties. Even though there is not necessarily another 3rd party owner to sue you on those properties, there is still often a perceived increase in exposure from the guest’s perspective, since you both own and professionally manage your property. PBI Group includes professional liability coverage on owned properties, if managed through the insured company.
Right Coverage at the Right Price for vacation rental managers means a policy that is actually designed for your industry and your specific business — not just a generic real estate E&O template.
E&O, GL and Cyber are the foundation for STR management coverage.
This is a key coverage for STR / vacation-rental management firms — whether you manage a few dozen units or thousands. Good E&O covers alleged negligence in the performance of professional services as a PM, including contingent bodily injury/property damage (BI/PD) where your professional services are the proximate cause. This is a top exposure for STR's.
Learn moreSTR firms handle guest PII, owner banking, and credit/debit card info. Even if that info is stored in 3rd party systems, there is still liability on the PM's side. Good Cyber Liability policies cover data breach, ransomware, wire-fraud, invoice manipulation claims, and more.
Learn moreSlip-and-fall that are general business claims (not resulting from alleged negligence in PM professional services) are a common GL exposure, as are Personal Advertising and Injury claims like libel or false advertising. GL is usually a requirement in order for the contingent BI/PD E&O provisions to apply.
Learn moreGuest trips on a deck stair that wasn't flagged in the pre-arrival inspection. Hospital trip, lost work, lawsuit naming the PM. If GL denies the claim due to the professional services exclusion, a good E&O policy could pick up the defense if PM professional services was the proximate cause. This is a frequent STR claim category.
If a manager fails to coordinate necessary maintenance to fix a leaking pipe—this could lead to a property damage claim allegedly resulting from alleged negligence in the performance of PM professional services. If GL and other insurance is not applicable, a good E&O policy could pick up the claim.
If a manager allegedly fails to disclose, report, detect or advise the existence of Pollutants, that can be a covered claim. The definition of pollutants usually includes things like lead paint, radon, asbestos, or fungi/mold. Often this involves sickness, which is part of bodily injury. PBI Group includes specific carvebacks in our E&O for these issues resulting from PM professional services.
Let PBI Group get you a quote — no fluff, no pressure, just a fair price for strong coverage.
