Arizona Property Management Insurance

AZ Property Managers Insurance Coverage

Property managers in Arizona face significant risks of claims and lawsuits.

Imagine a tenant getting hurt because of a broken staircase railing. This could result in a liability claim against a property manager in Arizona.

Or consider a situation in Tucson where a tenant alleges they were denied a disability accommodation. This denial could lead to legal action and claims of Fair Housing Act violations.

Or as one more example, a tenant’s belongings might be damaged due to a leaky roof in a Tucson rental property. The tenant might file a claim against the property manager for negligence. 

Whether you’re managing apartments in Scottsdale, residential properties in Tempe, or running a full-service real estate brokerage in Flagstaff, strong insurance is essential.

Property management franchisees might also need additional specific coverages due to franchise requirements.

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What Kinds of Insurance do Arizona Property Managers Need?

Property management companies in Arizona should have at the very least three essential insurance coverages.

Errors and Omissions (E&O): Also called professional liability, E&O insurance protects property managers from claims of mistakes or negligence in their professional services. For instance, if a property manager fails to address a maintenance issue, causing financial loss to a property owner, a quality E&O policy can cover legal defense costs.

Cyber Liability Insurance: Protects property managers from the financial impact of data breaches and cyberattacks. For example, if a property management company’s database is hacked, exposing tenant information, cyber liability insurance can cover notification costs, credit monitoring, and legal fees.

General Liability (GL): Offers protection against bodily injury or property damage claims related to the property manager’s operations. For example, if a tenant or visitor slips and falls in your office, GL insurance can cover medical expenses and legal claims. If you own your commercial building, you’ll also need property insurance for complete protection. 

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Property Management E&O Insurance

Errors and Omissions (E&O) insurance is crucial for Arizona property managers, providing protection against significant financial risks.

Imagine a property manager misrepresents important details like square footage or amenities, leading to tenant dissatisfaction and legal action. E&O insurance can cover legal defense costs and settlements.

Or consider a scenario where a tenant falls ill due to unresolved mold issues and decides to sue. A quality E&O policy would cover the resulting bodily injury and property damage claims.

Keep in mind, many real estate E&O policies do not have adequate coverage for property managers. Always check for contingent bodily injury & property damage coverage for property management, and full limits of discrimination.  Those are some of the first coverages to be removed by many professional liability insurance carriers.

Property Management General Liability Coverage

General Liability (GL) insurance is essential for Arizona property managers, offering protection from various lawsuits and liability claims.

Bodily injury or property damage claims are often only covered under E&O policies if the property manager also has GL insurance.

For property managers who own their office buildings, a Commercial Package Policy or Business Owners Policy (BOP) is recommended. These policies combine GL coverage with commercial property insurance, safeguarding against damage, fire, theft, or vandalism.

Without these coverages, property managers face significant financial risks and legal issues that could threaten their business and assets.

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Data Breach Insurance

Property Management Cyber Insurance

Property managers in Arizona are increasingly at risk from cyber threats.

Consider a breach where tenant data is stolen, potentially leading to legal action against your firm. Such events are surprisingly common.

No matter where in Arizona you operate, cyberattacks like phishing, ransomware, data breaches, or fraudulent invoicing are becoming more frequent. The consequences include legal fees, regulatory penalties, and damage to your reputation.

Cyber insurance offers vital protection. It helps property managers handle the financial impact of cyber incidents. With customized cyber liability coverage, you can respond quickly, reduce losses, and protect your Arizona property management business.

Get Your Proposal from FirmSecured

At FirmSecured, we focus on providing insurance solutions for property management and real estate companies in Arizona.

Our experienced team thoroughly reviews your current coverage to uncover any gaps or vulnerabilities.

We partner with numerous insurance providers to present a variety of options tailored to your specific needs.

Our main objective is to equip you with the information needed to make well-informed decisions that fit your business’s unique requirements and budget.

Understanding the unique nature of each real estate operation, we pride ourselves on delivering personalized service and support.

FirmSecured is powered by Veritas Risk Management, an independent insurance agency based in Northeast Tennessee, and licensed in 47 states, including Arizona, New Mexico, Utah, Colorado, and Nevada.