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Posted on: March 13, 2024 by Huntersure
In today’s litigious society, property managers face many potential claims risks arising from their professional services, necessitating miscellaneous professional liability (MPL) insurance. As an insurance agent, it is essential to understand the significance of MPL insurance and how it can protect your clients in the property management industry.
Property managers face a wide range of professional liability risks that can lead to costly lawsuits and reputational damage. Wrongful or negligent eviction scenarios, where tenants claim they were unjustly removed from a property, can result in legal action against the property manager. Discrimination claims, alleging unfair treatment based on protected characteristics such as race, gender, or disability, pose another significant risk.
Faulty maintenance issues, such as failure to address safety hazards or maintain the property, can lead to tenant injuries and subsequent liability claims. Breach of contract situations, where the property manager fails to fulfill their contractual obligations to the property owner or tenants, can also give rise to legal disputes.
Additionally, property managers have a duty to protect the properties they oversee, and failure to do so adequately can result in liability for damages.
MPL insurance, also known as errors and omissions insurance, meets property managers’ unique needs. This coverage protects against financial losses arising from negligence, errors, or omissions in the professional services provided by the property manager.
In the event of a lawsuit, the insurance company will provide legal defense and cover any settlements or judgments, safeguarding the property manager’s assets and reputation. The coverage extends to various claims scenarios, including wrongful eviction, discrimination, faulty maintenance, breach of contract, failure to protect property, and subcontractor errors.
It is important to note that even if a property manager is an additional insured on a landlord’s insurance policy, this coverage does not provide adequate protection against professional liability claims. Property managers must have their own E&O insurance to ensure comprehensive coverage and peace of mind in their daily operations.
Imagine a scenario where a tenant slips and falls on a poorly maintained staircase, suffering serious injuries. The tenant sues the property manager, alleging negligence in maintaining the property.
In another instance, a property manager faces accusations of wrongfully evicting a tenant, leading to a lengthy legal battle. Discrimination claims can also arise, such as when a prospective tenant alleges a housing denial was due to their race or familial status.
MPL insurance proves invaluable in these situations, providing the property manager with legal defense and covering any potential settlements or judgments. Without this coverage, the property manager would have to bear the financial burden of legal fees and damages out of pocket, which could devastate their business.
As an insurance agent, you are responsible for educating your clients in the property management industry about the critical role this coverage plays in safeguarding their businesses. By prioritizing MPL insurance, property managers can focus on delivering exceptional service to their clients, secure in the knowledge that they have a robust safety net in place. Contact us today for more information.
Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We specialize in providing insurance solutions for businesses of all sizes. Our program features can cover small firms (grossing $2.5 million annually) to large corporations (grossing $25 million annually or more). We make doing business with us easy with our breadth and depth of knowledge of E&O insurance, our proprietary underwriting system that allows for responsive quoting, binding, and policy issuance and tailored products to meet the needs of your insureds. Give us a call at (855) 585-6255 to learn more.
Posted in: Professional Liability