Property Managers Professional Package

Available Coverage for Property Managers Professional Package

• Coverage A: Errors and omissions provides coverage if sued while providing professional services in the management or leasing of property
• New enhancement: Automatic wrongful eviction coverage provided for the management of residential property
• New enhancement: Optional personal injury coverage available for 10 percent additional premium
• Coverage B: Tenant discrimination optional coverage for defense and indemnification if sued by a third party for allegations of discrimination
• Coverage C: Employment practices liability optional coverage if sued in your capacity as an employer for wrongful employment acts. In addition, our product offers coverage for individuals who are employed by the owner of the building being managed
• New enhancement: Premises preferred package optional package available for the property manager’s office that includes general liability written on an occurrence form with optional property coverage on a special form

Coverage Limits Available for Property Managers Professional Package

• Errors and omissions limits available up to $5,000,000
• Tenant discrimination limits available up to $250,000/$1,000,000 (a limit of only $100,000 is offered in certain high-risk locations)
• Employment practices liability limits available up to $1,000,000
• Premises preferred package general liability limits up to $1,000,000/$2,000,000 and personal property limits up to $250,000

Claim Example for Property Managers Professional Package

PROFESSIONAL LIABILITY CLAIMS: A property manager was working exclusively with a new luxury 250-unit apartment complex to rent the apartments as they became available. Six months after the manager began work on this project, only a small percentage of the units were occupied. There were many factors causing this including the closing of a large area employer, heavy construction in the area making travel to this complex difficult and the construction of other new temporary housing developments in the area. The owner of the complex was upset that there were so many units unoccupied and blamed the property manager. He sued the property manager for failure to rent the properties in a timely manner and lost income.

ABC Property Management Company was competing for the lease of a large Company that had moved into the area. During the negotiation process, the Company mentioned that they had also been approached by 123 Property Management, another firm in the area and was also looking at their space. The property manager at ABC stated that they had heard negative reviews about how the other property manager maintained their properties. The Company rented space from ABC Property Management. 123 Property Management followed up with the company and heard what ABC Property Management said about them. They sued for slander as a result.

Paul Resident purchased a unit in Happy Valley Homeowners Association. He applied for additional parking permits at the complex, but was denied. Paul and his family often received parking citations issued by the property manager. Paul is Hispanic and spoke to other residents of Hispanic nationality, who also felt that they were denied additional parking permits and given parking citations when non-minorities offenses were ignored. Paul sued for discrimination. (Covered only if Coverage Part B, Tenant Discrimination, is purchased).

A manager for an apartment complex was called when a pipe broke and there was water leaking into one of the units. She called the maintenance worker she employed and asked him to come and fix the problem. The maintenance worker showed up five hours after the call, and the property manager fired him as he had a habit of responding late to emergency calls. The maintenance worker sued the property manager for wrongful termination stating the true reason he was fired was because he had spurned advances the property manager had made towards him. (Covered only if Coverage Part C, Employment Practices Liability was purchased).

A property manager rented an apartment to a student in a college town. The tenant disturbed the peace at the complex, often throwing loud parties that ran late into the night. After numerous warnings the property manager took steps to evict the tenant, resulting in removing their property from the premises. The student sued for wrongful eviction. (Covered only on management of Residential Properties).

PERSONALLY OWNED PROPERTY MANAGEMENT: A minority couple apply to rent one of the properties you own. Due to their poor credit history you decline their application. Shortly afterward you rent the home to a non- minority couple with excellent credit. The first couple who is still in search of a place to rent; see the home has been rented so quickly and sue you for discrimination. They claim you declined their application due to their ethnicity and not their credit history. (discrimination claim)

Your leasing company ABC leasing is losing leases to XYZ Leasing, another leasing company. While trying to close a leasing deal with a local business, you mention to the potential tenant that the owner of XYZ Leasing has been known to be an unscrupulous business man and often voided contracts. The potential tenant then relays what you said about XYZ Leasing and they turn around and sue you for libel/slander.

A property owner rented one of his homes to a young man in a residential neighborhood. The young man came with excellent references. However, he immediately began to disturb the peace in this neighborhood, often throwing loud parties that ran late into the night. After numerous warnings the property owner took steps to evict the tenant, resulting in removing their property from the premises. The young man sued for wrongful eviction.

PREMISES ONLY PACKAGE CLAIMS: Jack, the owner of Jack’s Slacks has missed two month’s rent payment due to family issues. The property manager agreed to give Jack three month’s grace period before taking legal action. Jack just received a final notice of payment in the mail from the property manager and storms into the property manager’s office to discuss. Jack trips over the cord to the fan and falls to the ground. Jack breaks his arm and sprains his ankle. Jack sues for damages.

Bruce, the owner of the Management Man, takes the afternoon to work on some paperwork back at the office. As he is working on the computer, a thunderstorm rolls through causing a power surge. Bruce sees some sparks shooting out of the computer resulting in a fire. As a result, of the fire the computer’s hard-drive is destroyed. Bruce needs a new hard drive to get back up and running.